Food, wine and cigarettes push up shop prices

PRICES rose by 1.9 per cent in the year to February, driven up by higher bills for food, wine and cigarettes.

The tax paid on wine increased at the start of the month, pushing up the cost of a bottle by 8p. Duty on high-strength sparkling cider was also raised, driving costs higher.

Meanwhile, bread, cereals and vegetables also cost more, according to the Office for National Statistics (ONS), while tobacco products were 8.3pc higher than a year earlier.

It pushed inflation as measured by the consumer prices index up to 1.9pc for the month – a rise on January’s 1.8pc.

But it is still far below wage rises, which are running at 3.4pc a year – meaning that families’ pay is stretching further because their money buys more in the shops.

The figure is also below the 2pc targeted by the Bank of England.

This is likely to reduce pressure on the Bank of England for an interest rate hike, sparing millions of mortgage borrowers from increased costs.