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New Labour The Party Of 40% Inflation For The Poor

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Struggling families to be hit as food prices rise

By Harry Wallop, Consumer Affairs Correspondent

Last Updated: 1:38am GMT 11/03/2008

The cost of food is accelerating at a record rate due to soaring dairy and meat prices, official figures show.

Supermarkets are having to pay 8.4 per cent more than a year ago for everything from milk and bread to ready meals and packaged meat.

This is the highest annual rate since 1986 when the Office of National Statistics started records.

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Analysts say most of the increases will be passed to shoppers already hit by record rises in household bills.

Food prices have soared in recent months, with a £1.06 pack of butter 41 per cent more expensive than a year ago and a standard sliced loaf hitting £1 for the first time.

Statistics from The Grocer, the trade magazine, show that cheese is now more expensive than at any time in the past three years. Stilton is 41 per cent dearer than a year ago.

MySupermarket.co.uk, a price comparision website, calculates that a family which was spending £70 on their weekly grocery shop are now paying £400 more a year on their food bills.

Economists said the factory gate figures are likely to fuel a further rise in supermarket prices.

Paul Dales, at Capital Economics, said: "Quite a big part of this will be passed on to the high street. Food is something shoppers don't tend to cut back on, so retailers are in a good position to put up their prices without losing business."

This year has also seen sharp increases in utility bills, with the average gas and electricity tariff now standing at £1,026, a 13 per cent increase on last year. Inflation-busting water and council tax bills have also been announced.

In contrast, most salaries have increased at a far slower rate, leaving millions of households with less disposable income.

Several factors lie behind rising food prices. British fruit and vegetables were hit by last year's poor summer. Many crops suffered, especially the pea and potato harvest. The wet weather also forced many dairy farmers to give their herds expensive winter feed, adding to costs.

Global commodity markets have also been in turmoil as poor harvests, especially in Australia, have led to lower supplies of wheat. This has combined with surging demand from India and China.

The mix of falling supply and rising demand produced spiralling prices for wheat, meat and dairy products.

As a result, food factories are having to pay 16.4 per cent more for food ingredients than a year ago and double that rate for ingredients from Britain, according to yesterday's figures.

The surging level of factory gate inflation, now 5.7 per cent overall, is likely to delay another interest rate cut from the Bank of England, which is trying to contain inflation while avoiding a major economic downturn.

Mervyn King, the Governor of the Bank, has already said this year looks like being the toughest for policy makers since the central bank won independence from the government in 1997.

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Guest Charlie The Tramp
The cost of food is accelerating at a record rate due to soaring dairy and meat prices, official figures show.

Mrs CTT and myself conducted an on the ground survey during February we cut our food bill by 40% without cutting out the amount we eat.

Oh the joys of being retired with plenty of time on our hands. ;)

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however (and with a little bit of work) the government will soon be able to tell us that inflation is at about 2%.

there is something horribly wrong if you despise your government, catastrophically so if you are right to do so.

after this debacle has played through and the gallows where the government were hung dismantled i would like to see the labour party reborn, their old values rebuilt.

i just hope that they have enough shame never to cal themselves labour again.

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Truth is Labour are now starting to become tangled in their own spin.

Real Inflation as measured by the cost of living is soaring - the golden rules of borrowing all broken - the rules of the game changed and manipulated beyond recognition and common sense. An officially spouted reality that most people do not recognise.

Crime being forgiven - debt is a way of life for the people and the government - corruption is endemic in politics etc, etc, etc.

We are now a banana republic - we just need to admit it and realise that we have to take responsibility for ourselves - there is no point trusting the government to do it - they spend our money getting re-elected not looking after our long term interests - if they did then they would also include a saving ratio as part of their stated economic goal.

HAL

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thats why ive been stocking up on tin food.

Beleive me you can not stock too much

grain is now at £188 per ton from £78 two years ago and it showns no sign of slowing and don't take in the rubish that China has suddenly decide that it's people need to eat.

if this carries on along with all the tax rised then exspect big riots when the economy turns down.

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Guest DissipatedYouthIsValuable
Mrs CTT and myself conducted an on the ground survey during February we cut our food bill by 40% without cutting out the amount we eat.

Oh the joys of being retired with plenty of time on our hands. ;)

Any chance of the details?

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Any chance of the details?

Shop around. Buy bits here and there - price match, and stock up when prices are low.

The problem is it's time consuming and petrol hungry. You have to weigh up time and effort with potential savings.

Eg: asda has massively cheap pasta but some of their stuff is dearer than morrisons. Tesco has special offers but they change and run out.

If you have two days to do your shopping then it's easy. If you want to do your shopping in an hour then it's not.

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Guest DissipatedYouthIsValuable
Shop around. Buy bits here and there - price match, and stock up when prices are low.

The problem is it's time consuming and petrol hungry. You have to weigh up time and effort with potential savings.

Eg: asda has massively cheap pasta but some of their stuff is dearer than morrisons. Tesco has special offers but they change and run out.

If you have two days to do your shopping then it's easy. If you want to do your shopping in an hour then it's not.

Those pesky old people with time on their hands and state provided cars.

"Get off my.....er......the bank's.....lawn.....er.....2ft square balcony!"

Edited by DissipatedYouthIsValuable

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Shop around. Buy bits here and there - price match, and stock up when prices are low.

The problem is it's time consuming and petrol hungry. You have to weigh up time and effort with potential savings.

Eg: asda has massively cheap pasta but some of their stuff is dearer than morrisons. Tesco has special offers but they change and run out.

If you have two days to do your shopping then it's easy. If you want to do your shopping in an hour then it's not.

Even if you don't have much time to shop around make sure you don't always go to the same supermarket for your main food shop. If you visit all the major supermarkets in rotation you can stock up with whatever is a good buy/special offer. It's an easy way to save a lot on your food bills without much extra effort. (assuming you live in an area where ther is easy access to several different retailers)

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Look on the bright side: more expensive food may help to deal with Britain's obesity epidemic.

Carbohydrates will stay cheap (in comparison) and it does not take that much overeating to get fat anyway. If anything, people will get fatter because they cannot afford anything other than rubbish, and be sicker with it.

As for Labour being the party of the poor -- yeah, in the sense that the poor finance their parties.

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  • 293 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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