Tuesday, 4 September 2012

Latest food price rise of 3% is just for starters, retailers warn as poor harvests make meals more expensive

Shoppers have been warned to expect more food price rises following further evidence that the cost of putting a meal on the table is rising faster than incomes.

Annual food price inflation was running at 3.1 per cent in August – almost double the average 1.6 per cent increase in incomes.

The figures are published today by the British Retail Consortium, which warns that a drought in the US and other key farm export countries will bring new price rises.

British fruit and root crop farmers have also been hit by the wettest summer in 100 years which has reduced yields and pushed up wholesale prices. (Read further: Source)