Food prices in the UK continued to rise in April at their fastest pace in 45 years, with prices of staples such as sugar, milk and pasta rising sharply.
Huge increase in food prices
The rate of increase in food prices slowed slightly in the year to April but, at 19.1%, is close to a record high.
This comes as the headline inflation rate in the UK has fallen sharply.
However, it did not fall as much as expected and the chancellor said food prices remained “worryingly high”.
Inflation is a measure of the cost of living, and to calculate it, the Office for National Statistics (ONS) keeps track of the prices of hundreds of everyday goods, known as the ‘goods basket’.
The rate has skyrocketed over the past 18 months as food and energy prices have skyrocketed, leaving many households struggling.
Inflation was 8.7% in the year to April – down from 10.1% in March, but above the 8.2% figure expected.
However, it does not mean that prices are falling, just that they are rising less quickly.
Why inflation is falling but prices keep rising
Inflation has eased as energy price hikes slow from spikes seen a year ago, just after Russia, a major oil and gas producer, invaded Ukraine and was hit with sanctions.
Ukraine is also a major producer of grains and sunflowers, which are used in everything from bread to oil and animal feed. Food prices have risen as the war has disrupted Ukraine’s transport.
The extreme weather also affected crops, including sugar beet, as well as some vegetables.
However, while the price of food continues to rise at near-record rates, the prices of basic foods such as bread, cereals, fish, milk and eggs are rising somewhat less rapidly.
“If you look at the prices businesses are facing and what they are paying for domestic food supplies, they have fallen from over 15% a year last month to below 10% this month,” said ONS chief economist Grant Fitzner.
The prices companies pay for imported food have also fallen “significantly”.
However, he said: “Of course, these are not yet reflected on supermarket shelves.”
Retailers say lower wholesale prices take time to trickle down to supermarket shelves because of the long-term contracts they typically sign with food manufacturers.
