high food prices

Food Prices High In UK Amid Brexit Process

Hike in food prices was the highest in March compared to all the ups in past more than three years and retailers blame Brexit is the main cause and pound too has been hit along with global commodity hikes.

The food inflation hit 1 percent compared to the same month in 2016 and it is the sharpest rise since February 2014, reveals the latest BRC-Nielsen Shop Price Index.

Data also reveals hike of about 2 to 3 percent in February in wider consumer prices index (CPI) and this is the highest since September 2013.

Meanwhile, the British Retail Consortium (BRC) reveals price war in supermarket has been able to keep a lid on price rises and this saved consumers to some extent from the steeper cost increases.

According to BRC chief executive Helen Dickinson, the overall shop prices were down by 0.8 percent compared to the same month in 2016 as non-food deflation accelerated to 2 percent from 1.8 percent fall in February this year.

Dickinson added the global food commodity costs have been increased by 17 percent compared to last year and this has generated a bit of pressure in the food supply chain.

The plunge in pound’s value has made import expensive and this has led to building substantial pressure on food retailers and restaurants in increasing the prices of their products.

Data from the Office for National Statistics reveal an iceberg lettuce has jumped by 67.2 percent between January and February this year. Tomato prices too have increased to 2.20 pound from 2.05 pound per kilogram over the two months.

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