Financial News

British households are swallowing food prices that have risen at almost twice the rate of inflation, according to new research.

A typical trolley of food has risen in price by 8.3% since the beginning of the year, a study by retail analysts Verdict Research found.

The price of meat and fish has risen 22.9% since January, while the cost of fresh fruit and vegetables is up 14.7%.

Figures showed that seven individual items are up in price by more than 40%.

These include pasta, ham, chicken, mayonnaise and basmati rice.

The findings mean the cost of food is far exceeding the rate of inflation - the Consumer Price Index, which includes shop goods, energy and fuel costs, now runs at 4.4%.

The survey comes after data from the British Retail Consortium (BRC) released this week showed the rocketing rate of food inflation slowed last month.

The BRC said food inflation posted its lowest monthly rise for five months to hit 10% in August. The month-on-month rise was 0.3%, down from 1.9% in July and the lowest since March's no-change reading.

The Verdict survey divided household supermarket purchases into 13 categories, with meat and fish showing the biggest increase in price.

General store cupboard items, including tinned foods, registered the next biggest increase at 15%.

Laundry, washing and toilet paper was up 14.4%, drink was up 6.8%, pet food up 6.5%, cereal and baked goods up 6% and frozen food up 5.8%.

Only ready meals and dairy goods were down since January, dropping 0.4% and 1.8% respectively.

The BRC said food inflation has more than quadrupled over the past year thanks to soaring packaging, cooking oil and fat costs, and has been the main driver of overall upward price pressure on the high street.

Yesterday the Bank of England's Monetary Policy Committee (MPC) kept interest rates on hold at 5% for the fifth month in a row despite the looming threat of recession.

Experts say rate cuts are not likely until November at the earliest.