High street stores have admitted that food prices are rising at the fastest annual rate for at least 18 months, leaving many households struggling to meet day-to-day expenses.

According to the latest figures released by the British Retail Consortium (BRC) retail food price rises are currently running at 4.7 per cent a year, though this could become far higher over the coming months, the body warned.

BRC director general, Stephen Robertson, said: "Retailers are succeeding at protecting customers from the full force of increasing commodity, energy and transport costs by absorbing most of those increases themselves, even when it's at the expense of their own margins.

"There is no doubt food prices would be much higher if it wasn't for retailers' efforts to contain them."

The release of these statistics comes on the back of a study carried out by Capital Economics, which found that disposable incomes are now at a 17-year low, while the recent Daily Mail Cost of Living Index for April concluded that average family food bills are now £800 higher than last year.

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Published: 09/05/2008    |    view the news archives