Sharp 2008 rise in food inflation


Food price inflation jumped to 11.9% year-on-year in 2008 but is likely to ease this year, Verdict Research has said.

To the end of December last year inflation on laundry and washing products reached 21.6%, meat and fish peaked at 17.7% and fresh fruit and vegetables 16.8%, Verdict said yesterday.

Annual frozen food inflation hit 9.9% and dairy products 7.6%, the research company added.

The figures come as the Office for National Statistics said that Consumer Price Inflation fell to 3.1% in December, thanks to stores discounting products.

Verdict consulting director Neil Saunders said: “The good news for consumers is that the pace of food inflation is easing and will probably start to reverse as we move in to 2009.

“Consumers have felt the pinch of rising food prices and have reacted by shopping around more, using discount supermarkets and buying less.”

Monthly food inflation reached 1.4% in December, Verdict said.

The British Retail Consortium reported earlier this month that yearly food price inflation in December was 6.1%.

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