Food price rises 'still increasing'

09/04/2009

Low-income Brits continue to be hit in the pocket by rising food prices, shops have revealed.

According to business group the British Retail Consortium (BRC), annual inflation for food rose from 1.9 per cent in January to two per cent in February.

This means that costs for the weekly grocery shop are still increasing - and the BRC said that the rate of this increase has itself been rising each month for the last four months.

The inflation problem comes at a time when people's budgets are being put under pressure by the credit crunch and financial downturn.
Stephen Robertson, BRC director general, said: "The shop price of food is increasing because retailers are paying more for their supplies. The majority of food consumed in the UK is sourced here, but the weak pound is pushing up prices for domestic produce as it becomes more attractive to overseas buyers."

He added: "The good news for customers is food inflation is lower than its peak last year and non-food goods, such as clothing and electricals, are also still cheaper than they were a year ago."

The BRC compiled its report with the help of researchers at Nielsen.

Tags; Budgeting Advice, Retirement Money Problems, Young Family Finances,

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