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Food prices are rising far faster in 'rip-off' Britain than in Europe
Last updated at 04:40am on 30.07.08
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.
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.'
Reader views (3)
Hotairmail - well put. Yet another price we're paying for our weak central bank.
- Zady, London
What you don't hear about is that the major reason for our food and fuel inflation is the falling pound.
The dollar has fallen far by nearly half against the Euro since 2001. Oil and foods priced in dollars therefore have risen. This has accelerated on the back of a surge of investment as people try to protect themselves against the falling dollar.
The pound has fallen 20% against the Euro this year alone. And the pound has fallen even against the dollar lately. Of course oil and food imports will suddenly be more expensive for us. "The pound in your pocket" and all that said a famous former Labour Prime Minister.
That is why the Euro zone is not suffering as much.
- Hotairmail, London
The tax on fuel is higher in the UK than in Europe. So when the price of oil goes up, the price of fuel for trucks and farm machinery goes up even faster. Trucks are used to deliver food to the shops, most farming is highly mechanised, so the price of food goes up faster in the UK than Europe.
Your table bears this out, as the 'red diesel' used by farmers in Norway is not taxed at all, whereas it is in England (even though it is a lower rate than cars), and their energy inflation is at the median.
- Threaded, Roskilde, Denmark
