Food inflation has reached a new high of 12.4 percent this past month, as the price of basics such as eggs and dairy products soared.
Food inflation accelerated strongly to 12.4% in November, up from 11.6% in October, above the 3-month average rate of 11.5%.
This is the highest inflation rate in the food category on record, the British Retail Consortium's (BRC) index shows.
Christmas cheer is likely to be dampened this year as households cut back on seasonal spending in order to prioritise the essentials.
Amidst the cost-of-living crisis, retailers and consumers are seeing surging energy costs, shelving shortages, and inflation in the face of a recession.
Helen Dickinson, BRC chief executive, said winter looked 'increasingly bleak' as pressures on prices continued unabated.
"Food prices have continued to soar, especially for meat, eggs and dairy, which have been hit by rocketing energy costs, and rising costs of animal feed and transport.
"Retailers continue to do all they can to support their customers and ensure everyone can enjoy the festive season by fixing prices of many essentials, offering discounts to vulnerable groups, raising pay for their own people, and expanding their value ranges.”
Mike Watkins, head of retailer insight ay NielsenIQ, which carried out the research, said that with prices still rising, the cost of Christmas would be higher this year.
"Shoppers will be managing their budgets more closely than at any time since the start of cost-of-living crisis," he explained.
"Retailers are now responding by offering seasonal savings and price cuts and will be hopeful of an uptick in shopper spend as we move into December."
