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(Bloomberg) — The rising price of store cupboard staples and alcoholic drinks has lifted UK food inflation to a nine-month high, as the country’s Labour government faces growing political pressure over living costs.
The rising price of store cupboard staples and alcoholic drinks has lifted UK food inflation to a nine-month high, as the country’s Labour government faces growing political pressure over living costs.
(Bloomberg) — The rising price of store cupboard staples and alcoholic drinks has lifted UK food inflation to a nine-month high, as the country’s Labour government faces growing political pressure over living costs.
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The British Retail Consortium said Tuesday that food prices climbed 2.4% in the year to March, faster than the 2.1% increase previously. The cost of ambient food — such as tins, cans and jars kept at room temperature — jumped 3.7%, a sharp acceleration from a 2.8% increase in February.
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Alongside rising grocery prices, households are being hit with higher energy and water bills, with local taxes also on the up. The UK’s energy price cap is being lifted on April 1 and opposition parties have accused ministers of presiding over a period of increased pain for regular Britons.
The perception of worsening hardship is dangerous for Labour after it made a key pledge to lift living standards. YouGov polling on Monday showed only 12% of people saying that the government has handled the cost-of-living situation well. Eight in 10 said prices in the shops are rising faster than their income, despite official statistics showing that wages have been climbing in real terms continuously since the summer of 2023.
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“Alcoholic and non-alcoholic beverages both saw price increases due to changes to duties and the hangover from high global sugar prices,” said Helen Dickinson, BRC chief executive, alongside Tuesday’s data.
Still, the BRC said overall shop prices fell 0.4% in March, driven by double-digit deflation in clothing and footwear due to “weak consumer demand.”
Dickinson warned that shop price inflation will pick up in the coming months as retailers pass on extra costs. Shops are facing a double whammy in April from a hike in the national minimum wage and a sharp increase in employers’ national insurance contributions.
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