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Daily Mirror
Daily Mirror
Business
Levi Winchester

Cost of cup of tea surges in more misery for Brits - as food inflation hits record 11.6%

Food inflation soared to a record 11.6% in October as the cost of living crisis continues to push up supermarket prices.

The price of tea bags, milk and sugar all rose significantly - meaning the cost of making a cuppa was more expensive.

The latest food inflation figure from the British Retail Consortium (BRC)-Nielsen Shop Price Index is up from 10.6% in September.

Overall shop prices were 6.6% higher compared to a year ago, with fresh food up 13.3% and non-food inflation rising by 4.1%.

Retailers are being hit by higher costs for ingredients, energy and transport, with the price being passed on to consumers.

The war in Ukraine has also disrupted supplies of goods such as grain, oil and fertiliser from the region.

Tea bags, milk and sugar all rose in price significantly (Anadolu Agency via Getty Images)

Overall inflation - the rate at which UK prices rise - surged to 10.1% in September and is now at a 40-year high.

The Bank of England has been raising interest rates to try and cool inflation, with the base rate now sitting at 2.25%.

Analysts suggest interest rates could be hiked to 3% this Thursday, in what would be a 33-year high.

BRC chief executive Helen Dickinson said: "It has been a difficult month for consumers who not only faced an increase in their energy bills, but also a more expensive shopping basket.

"Prices were pushed up because of the significant input cost pressures faced by retailers due to rising commodity and energy prices and a tight labour market.

"While some supply chain costs are beginning to fall, this is more than offset by the cost of energy, meaning a difficult time ahead for retailers and households alike."

Mike Watkins, head of retailer and business insight at NielsenIQ, said: "External factors are keeping shop price inflation at record highs and the challenging economic conditions are significantly impacting consumer confidence and retail spend.

"With pressure growing on discretionary spend across both non-food and food retail, delivering good value is the table stake in the battle for shopper loyalty over the next eight weeks."

Which? head of food policy Sue Davies said: "Soaring food prices are a real concern, and our research shows millions of consumers are already skipping meals or struggling to put healthy meals on the table due to the cost-of-living crisis.

"It is vital that households get the support they need from the government and businesses."

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