Stocks to watch as food price inflation touches record high

Highlights

• According to the BRC-NielsenIQ shop price index, food price inflation witnessed a 15.7% rise in April.
• Food inflation of 15.7% this month from 15% in March.
• The non-food stores recorded inflation of 5.5% for the month, dropping from 5.9% in March.

There seems to be no end to the growing cost-of-living crisis in the UK. Many Brits were anticipating that following the easing of the inflation rate to 10.1% in March from the high of 10.4% in February, food prices would follow suit.

However, according to the BRC-NielsenIQ shop price index, food price inflation witnessed a 15.7% rise in April as it continued to pound consumer finances. Despite the retail store inflation slowing for the month with the spring discounting at fashion and furniture stores, figures indicate that the shop price inflation still stands at 8.8% in April.  

The non-food stores recorded inflation of 5.5% for the month, dropping from 5.9% in March. However, this seems to have been nullified with the jump in food inflation of 15.7% this month from 15% in March.

Amid this situation, let’s look at a few LSE-listed stocks during this period.

Next Plc (LON: NXT)

Leeds-based Next Plc is one of Britain’s leading clothing, footwear, and accessories retailers. With over 500 stores nationwide and over 190 franchise stores, it operates in 36 countries. The multinational fashion and homeware business at the time of market opening was up by 0.18% and was trading at GBX 6,752.00 million on 2 May 2023. The FTSE-100 constituent has given its investors returns of 12.05% over the past month. Next PLC was seen enjoying a market cap of £8,657.46 with an EPS of 5.31 on Tuesday.

Marks and Spencer Group Plc (LON: MKS)

Another leading British retailer, Marks and Spencer Group Plc, serves over 30 million customers worldwide. MKS stock on 2 May 2023, M&S stock was up by 0.67%, trading at GBX 165.45 and had a market cap of £3,229.37 million. The FTSE-250 constituent has given its shareholders a positive one-year return of 19.70% and 33.72% on a YTD basis. The MKS was seen as having an EPS of 0.16.  

Compass Group Plc (LON: CPG)

Compass Group plc is a global contract food service company which operates in 45 countries. The food services business offers dining solutions along with hospitality services at a low cost. The Compass Group on 2 May was witnessing a fall as it was down by -0.10% and was trading at GBX 2095.00. Compass held a market cap of £36,591.10 million with an EPS of 0.63.