Figures released by the British Retail Consortium Annual have revealed that food price inflation was recorded at 3.1 per cent for the month of August. Consumers can expect more price rises in the near future. Shoppers will have to deal with rising food prices as a result of the US drought, according to the British Retail Consortium. Stephen Robertson, director general at the BRC says that with price pressures from global commodities in the pipeline, this is likely to be food inflation bottoming out. “The price of products such as bread and pasta is already rising more quickly as increasing wheat costs from poor harvests in the US filter through.” Robertson believes that Britain is likely to see “more of that effect, not less” in future months.
With around two-thirds of US farmland experiencing drought, the crisis in the agricultural industry has led to a rise in the global price of ingredients for daily staples. The price of meat is also expected to soar with the rising price of animal feed. The threat of rising food prices comes following a poor British summer, which had delayed the harvesting of crops; the bad summer has meant more vegetables being imported from overseas.
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