London Daily

Focus on the big picture.
Friday, Sep 29, 2023

UK inflation: Milk, cheese and eggs push food price rises to 14-year high

UK inflation: Milk, cheese and eggs push food price rises to 14-year high

The soaring price of milk, cheese and eggs has pushed food inflation to its highest level for 14 years.

Food prices rose at their fastest pace since 2008 in the year to August as the war in Ukraine continued to help drive up prices at supermarket tills.

Falling petrol and diesel prices meant the overall inflation rate eased slightly but it remains near a 40-year high, official figures show.

Rising costs are eating into budgets, with prices rising further than wages.

Overall UK inflation, which measures the rate at which prices rise, eased for the first time in almost a year in August, slipping to 9.9% from July's 10.1%.

The figure was not as high as economists had feared but some have warned the inflation rate is likely to continue to rise, noting that the cost of food, clothing and services - which include things such as shops and restaurant prices - were all continuing to rise sharply.

The Bank of England has warned inflation could top 13% this year, and is expected to keep raising interest rates to try to control it.


However, the government plan to try and prevent widespread hardship by limiting rises in household energy bills, is likely to mean inflation will now not rise as high as previously expected.

"High inflation continues to drive Britain's cost-of-living crisis, but the outlook has brightening considerably over the past week," said Jack Leslie, senior economist at the Resolution Foundation.

"The Energy Price Guarantee should prevent a second winter surge in prices."

"However, high inflation is set to be with us for some time, particularly for low-income who continue to be hit hardest by high prices."

Food prices have been going up around the world following Russia's invasion of Ukraine, which has been one of the factors pushing up prices at supermarket tills.

The war has disrupted supplies from the two countries, which are major exporters of goods such as sunflower oil, wheat, and fertiliser.

Inflation is the pace at which prices are rising. For example, if a bottle of milk costs £1 and that rises by 5p compared with a year earlier, then milk inflation is 5%.

Central banks around the world, including the Bank of England, have been trying to get soaring inflation under control by hiking interest rates.

Raising rates is a way of controlling inflation, as it increases the cost of borrowing and encourages people to borrow and spend less. It also encourages people to save more.

The Bank had been widely expected to increase rates again on Thursday, but it postponed that decision following the death of Queen Elizabeth II.

The Monetary Policy Committee's decision will now be announced on 22 September.

Kitty Ussher, chief economist at the Institute of Directors said she still expected interest rates to go up when the Bank of England announced its latest decision.

"The fact that the falling headline rate is due to changes in the price of petrol and diesel, which is driven predominantly by the international price of oil rather than by domestic factors, means news is unlikely to alter expectations of a rise in interest rates," she said, noting the Bank would act to try to stem UK price rises, such as food and services.


House prices


According to separate figures published by the ONS, house prices recorded their biggest annual increase in 19 years in the year to the end of July.

The 15.5% rise compared with a 7.8% annual increase the previous month.

The jump was mainly due to the effects of the stamp duty holiday last year.

The stamp duty holiday in England and Northern Ireland was reduced from July last year, before being phased out in October 2021.

A similar property tax holiday in Wales ended at the end of June last year and the equivalent holiday in Scotland ended at the end of March. All were a response to concerns about the economic effect of Covid lockdowns.

As a result, the jump recorded for this July was mainly because of the contrast with the falls in prices seen this time last year.

The average UK house price was £292,000 in July, the ONS said.

Newsletter

Related Articles

London Daily
Close
0:00
0:00
Paper straws found to contain long-lasting and potentially toxic chemicals - study
You Are So Beautiful
FTX's Bankman-Fried headed for jail after judge revokes bail
Postmodern Jukebox European Tour Version
Blackrock gets half a trillion dollar deal to rebuild Ukraine
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Sattahip Motor Show 20
Greek PM offers tourists affected by wildfires a free stay in Rhodes next year.
SONATE AU CLAIR DE LUNE - Moonlight sonata
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
A kiss to build a dream on
End of Viagra? FDA approved a gel against erectile dysfunction
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
UK sanctions Russians judges over dual British national Kara-Murza's trial
Mean Blues
US restricts visa-free travel for Hungarian passport holders because of security concerns
La Chansonnette
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Pattaya Addicts
Southeast Asia moves closer to economic unity with new regional payments system
Franz Liszt - Liebestraum - Love Dream
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Dream a little dream of me
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Unchained Melody sung like you've NEVER heard!
How “peacekeepers” at the UN spend our American tax dollars.
Dave Brubeck - Take Five
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Rondo Alla Turca
Spanish Citizenship Granted to Iranian chess player who removed hijab
Kiss of fire
US Senate Republican Mitch McConnell freezes up, leaves press conference
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
Israel Cachao López - Guajira Clásica
San Francisco car crash
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
This camera man is a genius
Strauss - Radetzky March - Karajan
3D ad in front of Burj Khalifa
La vie en rose
Next level gaming
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
BMW driver…
Orlando Cachaito Lopez Redencion
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Edith Piaf - NON, JE NE REGRETTE RIEN
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
RADETZKY MARCH-2008-Wien, New Year Concert
Musk announces Twitter name and logo change to X.com
Only you (And you alone)
The future of sport
Strangers In The Night
New York City Agrees to Compensate Demonstrators Subjected to Excessive Force and Unlawful Arrests Amidst Widespread Protests
Charles Aznavour - La Boheme
Paul Simon: "I can't perform anymore due to hearing loss"
Summer time
The politician and the journalist lost control and started fighting on live broadcast.
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
The future of sports
Aux Champs Elysees
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
La Mer (Beyond the Sea) – Avalon Jazz Band
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
She
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Swedish Embassy in Baghdad Engulfed in Flames Amidst a Firestorm of Protests
Radiohead - Creep
TikTok Takes On Spotify And Apple, Launches Own Music Service
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Perhaps, Perhaps, Perhaps - Multi-Couples
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Pentatonix Havana
House of Commons rejects nine significant amendments from the Unelected, Privilaged House of Lord - Overturn Crucial Migration Bill Amendments in a Bid to Curb Unauthorized Maritime Immigration
Paula Cole - Autumn Leaves
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Oscar Benton Bensonhurst Blues
Typo sends millions of US military emails to Russian ally Mali
OH NANANA vs ABUSADAMENTE
Muslim Tycoon Asif Aziz Receives Approval for the Transformation of the iconic London Trocadero Landmark into Mosque
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
NIGHTWISH - The Phantom Of The Opera
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
Motorshow 2016 Tanjay Negros Oriental
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Monica Bellucci - Ti Amo
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
Michael Jackson - Billie Jean Milena The Voice France 2018
Israeli Prime Minister Netanyahu Hospitalized Due to Dehydration Amidst Summer Heatwave
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×