Food prices surged at their fastest pace in nine months in January and will “rise across the board” this year, a new survey has suggested, raising concerns about the potential resurgence of inflation this year.

The British Retail Consortium’s (BRC) shop price index showed that food prices rose 0.5 per cent month-on-month, up from 0.1 per cent in December.

“This month’s figures showed early signs of what is to come,” said Helen Dickinson, chief executive of the BRC, noting that ‘ambient’ food prices rose one per cent on the back of a spike in sugary products, chocolate and alcohol.

Recent forecasts from the lobby group suggest that food prices will rise by an average of 4.2 per cent in the second half of this year as firms deal with £7bn in extra costs announced in the Budget.

“Higher employer NICs, increased National Living Wage, and a new packaging levy mean that prices are expected to rise across the board,” Dickinson said.

Nevertheless, annual food inflation still eased to 1.6 per cent in January, down from 1.8 per cent previously and at the lowest level since November 2021.

Non-food prices also remained in deflation thanks to the January sales, meaning shop prices generally fell by 0.7 per cent in the year-to-January.

Mike Watkins, head of retailer and business insight at NielsenIQ, said that consumers were still being careful with their money, so firms may find it difficult to pass on higher costs.