Financial Times FT.com

Shops forced to swallow food cost rise

By Norma Cohen, Economics Correspondent

Published: May 13 2008 21:44 | Last updated: May 13 2008 21:44

Rising commodity prices have been the biggest driver of inflation, although until recently producers struggled to pass on the increases to supermarkets. The latest data from the ONS shows that has changed.

Food prices, particularly for meat and fruit, are up sharply, increasing at annual rates of 8.5 and 7.4 per cent respectively in April – well ahead of the headline rise in the consumer price index, which stood at 3 per cent.

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