Food inflation is predicted to almost double after Christmas, according to experts.
Families across the North East are already struggling due to the sharp increase in the cost of groceries. It is adding to the wider cost of living crisis which includes the increased price of petrol and energy bills.
Mirror Online reports how the impact of higher commodity costs, energy and the price of imported goods has already seen food inflation reach more than 10%. Global bank Citigroup, in a joint report with the Institute for Fiscal Studies, predict that it could jump to 17% in the first three months of next year, and peak at around 20%.
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Sterling’s weakness against the dollar risks adding to the hike. This is because the UK imported about £50billion worth of food from abroad last year.
Benjamin Nabarro, chief UK economist at Citigroup, said: "Food is now an increasingly pressing concern."
Research firm Kantar will publish figures for grocery price inflation on Tuesday. Previous data from the firm found that the average household was spending £571 more on groceries than a year ago.
Citigroup’s analysis predicts the overall rate of UK inflation will peak at just under 12% later this year.
It also believes the Bank of England will eventually hike interest rates to 4.5% - up from 2.25% now, but lower than the 6% financial markets had been predicting at one stage recently,
Citi said: "Households will be hit by rising mortgage costs as increasing numbers roll off their fixed rate deals. Rising interest rates will also make it more expensive for households to borrow their way through the storm."
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