Why are food prices still on the up?published at 07:50 BST
07:50 BST
Michael Race
Business and economics reporter
Rising employment costs and poor harvests have driven up
retailer’s bills, according to the industry body representing supermarkets.
There have been various warnings in recent months from farmers
over weak harvests because of heatwaves and spells of drought over the summer.
On top of that, all employers have faced a rise in the amount they are required to pay in National Insurance and minimum wages, which is likely to have been passed onto customers through higher prices.
Kris Hamer, of the British Retail Consortium, says: “With food inflation now outpacing wages, many families will
be struggling with the rising cost of living.”
Earlier this week, the boss of Aldi warned the government
that any further measures in this year’s Budget that further increase costs on
employers could lead to higher food prices.
