food prices soar to all time highs

If you get a chance to speak to anyone who has recently been abroad ask them how much soaring food prices were in the news ... Australia is in a little bubble of ignorance it seems. It is serious abroad because most countries aren't fortunate enough to have a resource base like Australia ...

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PRICE OF FOOD SOARS TO ALL-TIME RECORD


HIKE: Weekly shopping bill goes up by £15

Monday February 4,2008
By Martyn Brown

FAMILIES already struggling to make ends meet are being hit by soaring food prices.

Figures yesterday revealed that costs have rocketed by 12 per cent in the last year alone, with the nation’s weekly shopping bill £15 higher than two years ago.

The cost of a weekly shop has also jumped by more than two and a half times the rate of inflation in the past year. Worryingly, food prices are going up at a time when households are facing crippling rises in energy bills and mortgage payments, with the threat of council tax increases in the spring.

The price of a basket of 24 basic grocery items has risen by 12.1 per cent – or nearly £3 – across the three major supermarkets during the past year, according to the price comparison website mysupermarket.co.uk.

The latest data from a countrywide survey by The Grocer magazine revealed that the average cost of a 100-item trolley of staple products has shot up from £169.65 in January 2006 to £183.28 this week.

Record high grain prices and energy bills have forced up the cost of food production but, instead of absorbing them, shops are passing them on.

The biggest rises have seen the price of eggs jump from £1.01 to £1.39 for half a dozen, while the average price of a 800g loaf of branded white bread has leapt from 83p to £1.10.

A four-pint bottle of semi-skimmed milk now costs £1.34 but was only £1.11 two years ago. A bottle of red wine which cost £3.02 in 2006 is now £3.12. Meat, butter, margarine, sugar, coffee and vegetables have also soared.


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The hefty rise in the cost of a weekly shopping basket is a major blow to the huge number of families already struggling to meet increases in energy bills as well as higher mortgages and travel costs.

James Flower, analyst at Verdict Research, said: “Retailers have been able to absorb inflationary pressures in the past, but severe commodity price hikes and expensive fuel and energy bills have left them with no choice but to pass costs on to consumers.”

A spokeswoman for the National Consumer Council agreed that shoppers were beginning to feel the pinch. “Consumers are clearly noticing the difference in their shopping basket prices which are going up and up,” she said.

“People are starting to feel the squeeze from rising food costs as well as higher energy costs and the threat of further council tax rises.

“We have all got used to cheap food over the last few years so it was inevitable that supermarkets would raise costs when wholesale prices and energy costs went up.” Johnny Stern, of mysupermarket.co.uk, said: “It is no secret that many families are already struggling under the pressure of rising grocery prices.

“Supermarkets will inevitably pass on a portion of rising wholesale prices. However, there remains a wide range of competitively priced products.”

The report shows that Asda has had the greater success keeping a lid on rising prices. The price of its 100-item trolley was £175.92 this week – the cheapest in the survey and only 5 per cent more than its total in January 2006.

Tesco’s £182.21 trolley was 8.6 per cent higher than two years ago while Sainsbury’s at £189.13 was 9 per cent higher.

Morrisons registered the biggest rise of the big four supermarkets – up 10.3 per cent to £187.51.

Nevertheless, the report says that Morrisons this week knocked Asda off its perch as cheapest retailer in the magazine’s weekly survey of 33 products. Asda had been the cheapest retailer in The Grocer 33 for 15 consecutive weeks.

The Grocer said that any optimism inspired by the summit of global political and business leaders in Davos may not be enough to cheer the shopper who has to pay 38 per cent more for eggs than two years ago.

It said: “The sky-high cost of grain and its effect on food prices is old news, but events have conspired to threaten further misery. A global shortage of water and arable land will keep food prices rising for the forseeable future.”

A spokesman for Age Concern said: “Pensioners on low fixed incomes are the hardest hit by increases in household bills.

“We know that many elderly people feel the need to cut back on basic costs, essentially food and heating, to make ends meet. Elderly people shouldn’t have to worry about health versus wealth.”

http://www.express.co.uk/posts/view/33756/Price-of-food-soars-to-all-time-record