Families squeezed as food prices soar
Food prices are rising faster than at any time since records began, fuelling an increase in the average family's shopping bill of around £15 a week.
Food prices are rising faster than at any time since records began, fuelling an increase in the average family's shopping bill of around £15 a week.
Official figures showed wholesale food prices rose by 7.4 per cent in the past year - more than three times the headline rate of inflation. The increase, the highest since the Office for National Statistics began keeping records in 1992, has driven the cost of a consumer's average basket of groceries up by 12 per cent in a year.
Experts said the rate of food price inflation was making life increasingly difficult for the millions of families already struggling to make ends meet under the weight of rising council tax bills, mortgage repayments and energy costs.
Philip Hammond, the shadow chief secretary to the Treasury, said: "We are now faced with a classic squeeze. The economy is slowing down and at the same time inflation is rearing its ugly head again.
"This is more bad news for ordinary families, who will find it harder than ever to make ends meet."
The figures reflect the prices grocery stores and supermarkets are paying for food, increases likely to be passed on to customers.
The increases are being driven by rising meat prices and global shortages in key crops, caused both by adverse weather and the demand created by China's rampant economic growth.
Analysts at mySupermarket.co.uk, which tracks food prices, say the three biggest supermarkets - Tesco, Asda and Sainsbury's - increased their average price for a basket of goods by 12 per cent last year, adding up to £750 to the average family's annual bill.
A poor summer last year forced up vegetable prices. A kilo bag of frozen peas at Tesco went up from £1.19 at the end of 2006 to £1.79 at the end of last year.
A dozen free-range eggs from Sainsbury's rose from £1.62 to £2.35 and Asda increased the price of orange juice from 73p a litre to 88p.
Meat prices are rising particularly quickly. The ONS said the price of beef, pork and lamb products increased by 3.7 per cent in December alone. Figures compiled by the Meat Trades Journal show the average retail price of English beef has increased by 14.9 per cent in five years. English lamb rose by 10.3 per cent.
By Peter Allen
