Food prices yet to peak

SURGING shop prices are yet to peak as the cost of key ingredients such as sugar continues to rise, retailers warn today.

Food price inflation rose from 14.5 per cent in February to 15 per cent this month – and for fresh food it was a record of 17 per cent, according to the British Retail Consortium.

Director general Helen Dickinson blamed high manufacturing costs, a weak pound and poor harvests in Europe and North Africa. But there are good reasons to believe that food price rises will slow in the next few months as UK produce hits the shelves, she said.