Food group warns of grocery price rises

29/08/2008

Grocery costs continue to grow sharply, Premier Foods has said.

Over the past year, the group has claimed, food bills have grown by ten per cent - far outstripping the government's own current general inflation rate of 4.4 per cent.

In turn, this latest Consumer Price Index is well above the Bank of England's own target inflation rate, which stands at just two per cent.

Premier Foods chief executive, Robert Schofield, warned: "We have not seen the harvest yet, but we're anticipating prices rising by a further six per cent or seven per cent in the coming year.

"That may be less than the previous 12 months' double-digit growth but is still a long way higher than anyone would like to see."

Mr Schofield's comments came as Premier Foods announced its January-June 2008 profits, which have risen to £60 million.

The company makes Hovis bread, Mr Kipling cakes and Oxo stock cubes.

Tags; Budgeting Advice,

• Share
• 
• 
• Store
• 
• Follow
•