LONDON, March 28 (Reuters) - Soaring food prices pushed
annual inflation in British shops to its highest in at least 18
years in March, industry data showed on Tuesday.
The British Retail Consortium said overall shop price
inflation rose to 8.9% from 8.4% in February, the largest
increase since the British Retail Consortium's (BRC) records
started in 2005.
Prices in the BRC's food category were 15% higher than a
year ago, chiming with official inflation data last week that
showed food and drink prices rose in February at the fastest
annual rate since 1977.
"Shop price inflation has yet to peak," said BRC Chief
Executive Helen Dickinson, who cited the rising cost of sugar as
a major driver of higher food prices in March.
Sugar prices have been hit by falling production, rising
energy prices and a pesticide ban in Britain to protect bees.
"Fruit and vegetable prices also rose as poor harvests in
Europe and North Africa worsened availability, and imports
became more expensive due to the weakening pound," Dickinson
said.
British supermarkets have grappled with a shortage of key
salad staples, particularly tomatoes, cucumbers and peppers
after cold weather in growing areas.
The country's annual consumer price inflation - which
includes services and other non-shop goods such as energy - rose
unexpectedly to 10.4% in February. It hit a 41-year high of
11.1% in October.
(Reporting by Andy Bruce
Editing by William Schomberg)
Messaging: @brucereuters))
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