Spiralling food and energy prices blamed for inflation rising to 3.3%

Jun 18 2008 by Alex Turner, Liverpool Daily Post

RISING food and energy prices were blamed for the rise in inflation to 3.3% last month.

The biggest culprit behind the 0.3% inflation jump to 3.3% during May was foodstuffs, which accounted for around half the rise, or 0.14%.

According to the Office for National Statistics’ detailed figures, the cost of meat soared last month, with a kilo of bacon rising from 753p to 815p on average. Sausages rose from 343p per kilo to 363p over the month, while a roasting chicken increased from 254p to 271p.

Meanwhile many vegetables were dearer last month compared with flat or falling prices a year earlier. The cost of an iceberg lettuce fell sharply 12 months ago, but jumped from 81p to 107p in May.

Onions, tomatoes, and mushrooms added to the inflationary impact despite offsetting effects from cheaper fruit due to falling peach prices.

Johnny Stern, director of mySupermarket.co.uk, said: “Once again, we’re seeing a significant price increase in shoppers’ staple items.

“Unfortunately, prices of staples overall are going up, although elsewhere in the supermarket there are some product prices which have been cut.”

Gas and electricity bills were also little changed this year, compared to last year when average bills were falling in the wake of the price-cutting war between the UK’s “big six” energy firms.

The other significant contributor to the rise was recreation and leisure in the form of dearer books, newspapers and foreign holidays.