UK inflation remains at 3.8% but food prices continue to surge

According to official figures, the food price inflation increased in August in a row in a row and since the beginning of last year, costs have increased at the fastest speed.

As the prices of beef, butter, milk and chocolate increased, the cost of food and non -alcoholic beverages grew by 5.1% annually.

However, despite the increase in food costs, the price increase in other areas such as air fees slowed down and left the total rate of UK inflation as the same as July.

Economists, supermarkets in the minimum wage and national insurance contributions (NIC) government increases by higher prices, said food bills have increased, he said.

Total inflation remains above 2% target of the Bank of the UK, and the expectations of the ratio determination committee will receive interest rates on Thursday.

Chancellor Rachel Reeves, who will determine the government’s tax and spending plans on November 26, said that “families find it difficult and many economies are stuck”.

“So I’m determined to reduce costs and support people who encounter higher bills.”

Reeves announced in his first budget last year An increase in national insurance contributions for employers together An increase in the minimum wage.

The decision led to the reaction of many businesses that argue that it would lead to higher prices for customers.

Reeves said to companies before, “after not going back with more borrowing or more tax.” However, what taxes of the chancellor are growing on speculation.

Shadow Chancellor, Sir Mel Stide, said the price increase was “deep worrying for families” and the tax policies of the Labor Party were “stopping inflation”.

The National Statistics Office (Ones), which publishes the figures, said that the 5.1% increase in food and beverage prices was the highest rate for 19 months.

He also said that inflation in the UK is “significant higher than predictions for major European economies such as France and Germany.

While the inflation of France in August is 0.8%, Germany recorded a 2.1% price increase.

KPMG UK’s chief economist Yael Selfin said Britain was “contrary to other major economies in recent months in recent months”.

“Since April, the increase in inflation has been largely due to domestic policy elections, including the increase in the national insurance contributions of employers.

“These high costs were transferred to consumers by enterprises and entered the higher title inflation.”

The British retail consortium (BRC) said that food costs have left behind the average increase in wage and that ounce reached 4.7% between May and July.

“Food inflation is now behind wages, many families will fight the increasing cost of living,” BRC Insight director Kris Hamer said. He said.

However, the prices of some goods such as clothing and shoes, BRC’s “partially directed by retailers who reduce the end of the summer collections,” he said.

“Key staples such as cereals and pasta fell at a price per month.”

James Smith, who developed a market economist at Investment Bank ING, said the inflation figure is “absolutely not good for the Bank of the UK”.

BBC Radio 4 said that the TODAY program remained at 3.8% “This year, the expectation of more interest rates remained in a lot of balance.”

“For where we go from here, food inflation can rise a little more by the end of the year.”

The UK Bank has reduced interest rates five times since August last year and has received borrowing costs to 4%.

Until August, beef and beef at food costs increased by approximately 25%, while butter prices increased by about 19% and chocolate increased by 15.4%.

Butter and chocolate prices directly impressed his wife Rachel and Nottingham, Tom Egan, who founded and directed Coosh Bakery in Mapperley.

He said that the adverse weather conditions in cocoa -growing countries like Ghana were “more than twice the price we receive from our suppliers”.

“We’ve been paying somewhere in the region for £ 60 for 10 kg,” he said. “I think now more than 150 £ for the same 10 kg.”

Butter prices increased by 50% throughout the year, the suppliers told Mr. Egan, “the real amount of milk imported to England has fallen, and therefore clearly means that supply and demand have increased on things like butter”.

Meanwhile, the increase in national insurance contributions was “a little inserted” and the furnace leads to a more cautious about investing in areas such as equipment and technology that can increase productivity.