Food price inflation highest in UK

According to recently released figures food price inflation in the UK is higher than any other destination in Europe. The figures show that in the UK food price inflation is around four times higher than in the rest of Europe, and at the same time supermarkets have been enjoying record profits.

There has been a drop in the wholesale prices of many basic foods such as rice and potatoes, but weekly or monthly shopping bills for households still remain high.

The four leading supermarkets in the UK, which are Asda, Tesco, Morrison’s, and Sainsbury’s, have been accused of failure to pass on the savings to consumers.

Producers and suppliers to the supermarkets have said that they are only receiving a tiny fraction of the prise increases that consumers have been hit with, meaning that the supermarket giants are taking the majority of the increase for themselves, resulting in soaring profits whilst struggling households continue to pay through the nose.

The figures were released by the Organisation for Economic Co-operation and Development, and the organisation showed that last year food price inflation in the UK was 8.6 percent, whereas in the rest of Europe the average figure was just 2.2 percent. Even in the United States the figure only came in at 2.3 percent, making food price inflation in the UK nearly four times higher than the United States as well as the rest of Europe.

Vince Cable from the Liberal Democrats stated: ‘There is clear evidence that food and commodity prices are falling around the world. These should be passed on by retailers. There really is no excuse for supermarkets to take advantage of the situation to fatten up their profit margins.’