Today's Food News - Food Inflation

Food inflation: UK has highest rate in Europe

Britain stands out as having the broadest range of food price increases compared with the rest of major European economics and the United States, according to research from UBS.

The report says UK food prices are rising more rapidly than most other OECD economies’ food prices, and have significantly outstripped food retailers’ cost inflation.

This is in turn suggests the UK is most likely to see political agitation over food prices, and could allow UK politicians to suggest that food price inflation is “unfair” or “excessive”.

On bread prices, the UBS said the UK stands out once again as an economy where consumer price inflation is outstripping domestic costs. This is not happening in any of the other economies examined.

UBS's findings contrast with the rhetoric of British supermarkets, which argue shoppers are offsetting higher prices by buying more goods on promotion. These goods are not generally included in official consumer price statistics.