Food prices rise at fastest rate in four years

FOOD prices are rising at the fastest rate in four years – and experts warn they are likely to increase still further.

A study of 62,000 products sold at the major supermarkets found they are on average 2.4% higher than a year ago.

That is a big leap from July, when the year-on-year difference had been just 1.6%.

Figures from trade magazine The Grocer show Tesco shoppers hardest hit – with prices now 3.4% higher than a year ago. That is more than double the 1.6% rise seen at Sainsbury’s and the 1.5% at Morrisons. Asda’s year-on-year rise is 2.4%.

The biggest increase is in meat, fish and poultry, up by 4.6%, while dairy products are up 2.6%. But families will also feel the pinch in the treats aisle, with an overall rise of 3.5% – although biscuits and crisps both offer a crumb of comfort on just 1%.

Ready meals were also around 3% dearer than last year. Only soft drinks went down in price, dropping 1.3%, according to the magazine’s Grocer Price Index.

The Grocer said: “Overall prices were up 0.5% on a month-by-month basis, suggesting the GPI is likely to continue to rise through the rest of 2017.”

It came as two more stores hiked prices in the key banana battleground. Tesco and Sainsbury’s followed Asda’s 5.5% rise from 72p a kilo to 76p. A price war brought the price down to 68p two years ago.

AHEAD OF CURVE Bananas are up 5.5%