Bad news for shoppers – official figures show that last month, food prices were measured at their largest annual increase in three years.
According to the Office for National Statistics, food and non alcoholic beverage prices last month were 1.2% higher than in March 2016; the biggest increase since March 2014.
The Bank of England expect the Consumer Price Index inflation figure to reach 2.75% by the first half of 2018. Some anaylists believe that it could even breach 3% later this year.
Thanks to the slump in the pound since the Brexit vote, the figures indicate that the long period of food-price deflation helped by the supermarket price war is over.
Grocers have been focusing price increases on certain non-food items in the hope that it’ll be less noticed by their customers. Although the price of milk is unchanged, decorative candles rose 29% in 6 months, lightbulbs by 19% and dental floss by 17%.
However, within the food category there are also some drastic leaps. The biggest price rise was in oils and fats, which were up 15.5% compared to last year. Fish was 8.8% up and bread and cereals 1.4% higher.