Food prices eat into inflation

THE cost of keeping a family fed has shot up far faster than official inflation figures suggest, with some common food products rising by 50 per cent.

Inflation has fallen to 6.8 per cent, down from 11.1 per cent last October. And Chancellor Jeremy Hunt said the fall was proof the Government’s “decisive action” is working.

However, data published by the Office for National Statistics shows the cost of some basic products has risen by much more.

Granulated white sugar went up from 73p per kg to £1.12 in 12 months, a massive rise of 54 per cent.the cost of onions has risen from 86p per kg to £1.11, an increase of 30 per cent.

Broccoli rose from £1.89 a kg to £2.39 a kg, up by 27 per cent, while the cost of a dozen eggs also rose 27 per cent – from £2.61 to £3.31. A tin of baked beans went from 85p to £1.06, up by 24 per cent, and a kilo of cheddar soared from £7.70 to £9.49 – 23 per cent.

The discrepancy is because inflation measures the cost of a wide range of products and services which don’t change by the same amount. Fuel prices increased significantly but then fell, so they are now just 1.7 per cent higher than 12 months ago.this helped keep overall inflation down.

According to the Food and Drink Federation, which represents manufacturers, issues driving up costs include the pandemic, staff shortages and the war in Ukraine, which is a major supplier of wheat and vegetable oils.

But shoppers who keep a careful eye on prices may be able to spot some bargains.the cost of a 500g pack of spreadable butter has actually fallen by 2p in the past year.