Food prices rise by 50% as trade union warns soaring household bills mean millions are already in personal 'recession'

Millions of families are already 'in a recession' because their budgets cannot cope with soaring food and energy bills, unions will warn next week.

The alert, from the Trades Union Congress, comes as research showed some essential foods cost nearly 50 per cent more now than they did in January.

The price of everyday items such as packets of ham, bags of basmati rice and jars of mayonnaise have shot up, according to the research by the retail experts Verdict.

For families struggling to cope with below-inflation pay rises - which are effectively pay cuts - the impact is devastating.

In a speech on Monday, Brendan Barber, the TUC's general secretary, will spell out his fears about families suffering across the UK.

Britain is not officially in a recession - defined as two quarters of negative growth - but he will say that many of us are already stuck in a spiralling economic downturn.

Mr Barber will say: 'Millions of households in Britain are already in recession as wages fail to keep up with energy and food costs.'

He will add that this represents a definite 'cut in living standards'.

Mr Barber has already warned the Government that it will lose support at the next election if it fails to help people cope with the economic downturn adequately.

Speaking ahead of the TUC's annual conference next week, he said: 'I think millions of ordinary people are looking to the Government to help them through this time of significant economic uncertainty.'

Better pay rises, a windfall tax on energy companies and a 'fairer' tax system are all on the TUC's wish-list.

Verdict's research confirmed the painful impact of soaring food prices - particularly when other household bills are rising sharply too.

Neil Saunders, consulting director of the company, warned that food prices are 'likely to remain stable, rather than come down'.

He said: 'It is not surprising that consumers are feeling squeezed.

'Consumers have become used to food prices falling year after year.

'That era has gone and shoppers are having to adjust to higher prices.'

Verdict divided supermarket goods into 13 categories - and it found that prices have shot up in nine of them.

Only ready meals, dairy and baby food are down, and the falls are marginal.

But prices for all the other categories have shot up, particularly for the three worst offenders - meat and fish, up 22.9 per cent; general store cupboard, up 15 per cent; and fresh fruit and vegetables, up 14.7 per cent.

Verdict's research, commissioned by the BBC, found that on average prices have jumped 8.3 per cent between January and August this year.

Labour's determination to force millions of public sector workers to accept below-inflation pay rises will also be a key issue at next week's TUC conference.

Mr Barber described the policy as ' unjustified' and warned of further strikes by teachers and civil servants if a better deal is not put on the table.