Food prices will rise by an average of 4.2% in the latter half of the year as retailers battle £7 billion of increased costs from the Budget, a retail body has warned.

It looks like shoppers can expect the squeeze on their finances to continue this year

British Retail Consortium (BRC) chief executive Helen Dickinson warned retailers are looking to mitigate higher employer National Insurance costs, as well as an increase in the minimum wage

Festive food sales jumped but the retailer is concerned about the British economy.

The BRC said there was ‘little hope of prices going anywhere but up’ amid higher national insurance, National Living Wage and packaging costs.