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Food prices shoot up
10:03, 08 June 2011
by business editor Trevor Sturgess
Food costs shot up by nearly five per cent in May, adding more strain to household budgets.
As Scottish Power announced a 19 per cent hike in gas prices, shoppers faced higher bills at the supermarket tills.
While overall shop price inflation slowed to 2.3 per cent, down from 2.5 per cent in April, food inflation went up from 4.5 per cent in April to 4.9 per cent. Experts said that some of the price rises were due to seasonal and weather-related factors.
Weak demand kept non-food inflation to 0.8 per cent in May, down from 1.2 per cent the previous month.
As well as food costs, rising fuel, energy and insurance bills are hitting consumers.
Stephen Robertson, director general of the British Retail Consortium, said: "Recent volatility in the cost of key commodities, linked to dry weather and global demand, is now working through to the shop price of some food.
"Wheat is up 72 per cent and oil 50 per cent on a year ago while rising gas and electricity prices are pushing up costs at every stage of the supply chain."
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