The Producer Prices Index revealed that food prices jumped by 11.4% year-on-year in August, but the Consumer Price Index (what consumers pay) for food and drink stands at 12.3%, reports the Telegraph.
A Friends of the Earth spokesman told the paper that the statistics are proof supermarkets have begun to pass rising manufacturing charges on.
“We have been arguing for some time that they have been doing this, and these figures seem to show this is now definitely happening,” he said.
Retail analyst at Mintel Richard Perks asserted that there are well-thought campaigns by the large stores in these areas.
He commented: “Supermarkets are now passing on the vast majority of their costs. Most of these price promotions are an astute use of marketing spend, not a real price war.”
