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laurejon

Gordon Brown Has Some Juggling To Do

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Gordon Brown will be having a tantrum soon when he realises that yet again he will have to empty his basket of all food as prices have risen 10%.

Let us all have no doubts that if they manage to remain in office before being hauled before the ICC their basket in four months time will have nothing more than Toy Soldiers from China, and a Dyson Vacuum Cleaner from Eastern Europe.

Cheap food era 'over' as prices rise 10pc in supermarkets

By BECKY BARROW

23:00pm 23rd August 2006

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Big price rises are hitting supermarket shoppers, with some goods such as milk, bread and apples going up more than 10 pc. Click on the image to see how your groceries have increased in price

The era of cheap supermarkets could be over as inflation-busting rises are rife in the shopping aisles.

Big price rises are hitting supermarket shoppers, with some goods such as milk, bread and apples going up more than 10 per cent since May.

Some of the recent rises were because of poor harvests this year caused by the heatwave.

But food experts say that other factors - like rising fuel and commodity costs - will keep an upward pressure on grocery prices.

This means there is no going back on current prices - and more permanent rises are probably on the way.

It is a a major blow for consumers who have got used to the fact that supermarket prices go down or stay the same, but rarely rise.

Mortgages, council tax, and gas and electricity bills have all soared recently, but supermarkets were the one 'safe haven' for hard-working families.

Official figures show the cost of food shopping is rising at its fastest rate for nearly three years piling further financial pressure onto struggling families.

Figures from the Office for National Statistics show food prices were 3.2 per cent higher in July than the same month last year, the biggest annual rise since December 2003.

Other prices on the high street are falling, such as clothes and electronic goods, but food is soaring in the other direction.

Since January, food prices in shops from the local butcher to an Asda superstore have gone up five of the last seven months.

It is a shocking change for consumers who have been lulled into thinking that inflation does not exist in the world of British supermarkets.

Between January 200 and December, 2005, Britain's biggest retailer Tesco estimates its food prices fell around 15 per cent in real terms.

But experts warned yesterday that the ugly monster of price rises, not price cuts, is returning to supermarket shelves after a long holiday.

Richard Ratner, an analyst at the stockbrokers Seymour Pierce, said: 'It is not a temporary phenomenon.

'I think the supermarkets will makes these price increases stick.'

They blamed soaring energy prices as massive petrol bills and other energy bills hit supermarket's suppliers, distributors and stores.

These have an impact on everything from the petrol costs for supermarket delivery lorries to the lighting bill for chicken farmers.

Coffee price at seven-year high

Commodity prices are also to blame with basic goods such as coffee currently at a seven-year high and cereals, such as wheat and barley, also high.

For example, the rising price of wheat has pushed up the price of a typical loaf of bread by seven per cent over the last three months.

Poor harvests in this country and overseas caused by excessive temperatures were also blamed for having a knock-on effect on the price of fresh fruit, vegetables and other goods.

Richard Clarke, a food expert at the Grocer magazine, said: 'We've been spoiled in the last few years because the supermarkets have been very deflationary.

'But rising energy costs mean they are all feeling the pain.

'Retailers have been trying to keep a lid on it but they are buckling under the pressure now.

'Is the only way up?'

Until the late 1990s, food used to be the biggest expense for a typical British household every week.

But the falling price of food - and the rising price of almost everything else - means this has changed dramatically.

Today we spend more money on housing and leisure than we do on food, as average mortgages of £115,000 eat up our salaries.

A Tesco spokesman said: 'It is wrong to suggest that prices across the board are going up.

'Obviously poor harvests and changes in market conditions can have an effect on availability of produce.

'When wholesale costs go up, some prices will follow to reflect that change but we do all we can to keep prices as low as possible and deliver the best value for customers.'

An Asda spokesman said: 'Despite oil prices nearly doubling in the last 12 months, we've done our best to keep our prices as low as ever.'

The British Retail Consortium said prices are rising but food shopping is still cheaper than in many European countries, such as Norway and Greece.

Malcolm Pinkerton, business analyst at the BRC, said: 'We definitely do not think it is the start of a trend.

'I don't see retailers suddenly putting up prices because customers simply won't put up with it.'

Edited by laurejon

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I don't know about that. The milk I buy has not gone up in price, the mushrooms I buy recently went down a penny and my favourite bread is down by 2p. The core Iron Bru part of my diet is down from 40p for 2l to 36p for 2l. If I felt that prices were going up that fast I would stock up with 6 months or so of food (any more and it goes off), but I'm just not feeling that.

EDIT

Food inflation in various countries:

UK: 3.2%

Hungry -4.8% (negative)

Bulgaria -8.4% (negative)

New Zealand 1.5-2%

Canada 2%

Ireland: 1.7%

Zimbabwe 1069.9%

Edited by Della

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I don't know about that. The milk I buy has not gone up in price, the mushrooms I buy recently went down a penny and my favourite bread is down by 2p. The core Iron Bru part of my diet is down from 40p for 2l to 36p for 2l. If I felt that prices were going up that fast I would stock up with 6 months or so of food (any more and it goes off), but I'm just not feeling that.

EDIT

Food inflation in various countries:

UK: 3.2%

Hungry -4.8% (negative)Was this a typo or a joke ? :)

Bulgaria -8.4% (negative)

New Zealand 1.5-2%

Canada 2%

Ireland: 1.7%

Zimbabwe 1069.9%

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Hungry -4.8% (negative)Was this a typo or a joke ?

The rate is -4.8% (minus four point eight percent) I just wanted to indicate that I wasn't using '-' as a separator.

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Hungry -4.8% (negative)Was this a typo or a joke ?

The rate is -4.8% (minus four point eight percent) I just wanted to indicate that I wasn't using '-' as a separator.

I'll put you out of your misery... It should be Hungary not Hungry... and since this was about food he thought 'Hungry' might have been an attempt at humor!

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Hungry -4.8% (negative)Was this a typo or a joke ?

The rate is -4.8% (minus four point eight percent) I just wanted to indicate that I wasn't using '-' as a separator.

Hungry or Hungary ?

Also what's your source?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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