Fastest rise in food prices for 14 years

By Harry Wallop
Telegraph
Nov. 14, 2007

Food prices are increasing at their highest rate for more than a decade, official figures showed yesterday.

Increased wheat, dairy, meat and vegetable prices mean food factories are having to pay six per cent more for their raw ingredients than a year ago - the highest annual rate since 1993, said the Office of National Statistics (ONS).

The surging costs will be passed on to consumers, who are experiencing the highest food bills for years and could end up paying almost £1,000 extra on their annual food bill than a year ago.

Families are already struggling to cope with the effects of the credit crunch. Petrol prices exceed £1 for a litre of unleaded fuel, while mortgage payments and credit card fees are also rising.

Now the price of groceries is increasing as weekly staples shoot up in price in supermarkets. The cost of a pint of milk has reached an all-time high of 33½p and sliced bread costs a record £1.20 in big stores, a far cry from the 9p loaf that was available 15 years ago.

The company that makes Hovis said yesterday that it was raising prices by a further 4p a loaf, on top of the 12p by which they had risen in recent months, as it attempts to recover soaring wheat costs.