Food prices are rising far faster in 'rip-off' Britain than in Europe

 

By Sean Poulter

Last updated at 3:40 AM on 30th July 2008

 

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Food prices are rising more quickly in Britain than in similar economies across the globe.

 

A study published yesterday puts the food inflation rate at 9.5 per cent in June.

 

That is almost 65 per cent higher than in France, where the figure is 5.77 per cent, and a third higher than Germany's 7.12 per cent.

 

The UK's food inflation rate is 9.5 per cent - much higher than our neighbours in Spain at 7.2 per cent and the Netherlands at 6.1 per cent

 

The cost of energy - petrol, gas and electricity - is also racing ahead, imposing a crippling burden on families and pensioners.

 

Some of the biggest increases in shopping bills are being seen on fresh produce, such as beef, pork, veal, chicken, milk and eggs, as well as bread, pasta and rice.

 

 

 

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Supermarkets claim they are protecting customers against the worst effects of commodity price rises.

 

However, the figures from the Organisation for Economic Cooperation and Development study suggest otherwise.

 

Critics will argue that grocers on the Continent and beyond are doing a much better job at shielding shoppers.

 

In Western Europe only Iceland has a higher food inflation rate, of 16.6 per cent. But Iceland has particular problems in that it relies on expensive imports. The 9.5 per cent annual increase in the UK compares to 7.31 per cent in Ireland, 7.2 per cent in Spain, 7 per cent in Belgium, 6.55 per cent in the Netherlands and 6.12 per cent in Italy.

 

Looking further afield, food inflation is just 6.08 per cent in the U.S., 4.23 per cent in Japan and only 3.01 per cent in Canada.

 

Food bills in former Eastern bloc countries are rising sharply, but this is from a very low base.

 

The Daily Mail Cost of Living index, which looks at shopping basket essentials, shows an even higher annual increase in the UK of 17.8 per cent.

 

That means a household spending £100 a week on food a year ago now needs to find an extra £17.80 a week - or £925 a year.

The OECD's figures on energy prices are equally alarming with an annual rise of 19.09 per cent in the UK. That compares to 14.59 per cent in Germany and 18.64 per cent in France.

 

The British Retail Consortium claims food price rises would be far steeper but for the efforts of the supermarkets.

 

Its director general, Stephen Robertson, said: 'Although their own costs are going up, food retailers are running high-profile price cuts and promotions.

 

'They are keeping prices to customers down by cutting costs and increasing sales.'

well the supermarkets have to pay for their petrol price-war somehow :rolleyes:

Supermarket petrol price-war is only good in places where you have 2 or more supermarket petrol stations fighting it out.