The latest BRC Shop Price Index jumped the most in over a decade, to 2.8% versus 2.7% prior, which in turn suggests that the food price inflation keeps pushing the Bank of England (BOE) towards tighter monetary policy.

“Shop prices accelerated in May at the fastest rate in more than a decade, according to new figures that reveal the pressure on retailers to pass on the cost of rising energy bills and the soaring price of imports,” said The Guardian following the data release.

The news also adds, “Fresh food prices were the most affected by rising costs, with farmers reporting that they were struggling to cope with the rising cost of labor since Brexit and the escalating price of fertilizer since Russia’s invasion of Ukraine.”

FX reaction

GBP/USD holds onto the day-start recovery moves around 1.2610 following the news suggesting further upside to track.

Read: GBP/USD picks up bids around 1.2600 as BOE, Brexit chatters join US dollar retreat