Increase in food prices is hitting household budgets

• Food prices increased by 4.2% in September.
• The rise in egg and oil prices is contributing to inflation.
• Retail leaders warn about increased taxes.

Food prices in Great Britain have risen to the highest level in 18 months. In September, the inflation rate for food products reached 4.2%, which is higher than the 4% in August, according to the British Retail Consortium (BRC).

The rise in prices for basic products, such as eggs, oil, and chocolate, has become the main reason for this increase. High demand, limited supply, and rising labor costs have contributed to the increased prices, reported BRC executive director Helen Dickinson.

She noted that this price increase creates an additional burden for households, which are already struggling with the cost of living issues. More than 60 retail leaders, including Tesco, Sainsbury's, and Boots, have warned Finance Minister Rachel Reeves that further tax increases in the autumn budget could jeopardize plans to improve living standards in the country.

Along with predictions, inflation for food products could reach 6% by the end of the year, driven by rising global costs for supplies and seasonal factors such as weather. Additionally, an expected rise in energy tariffs could further strain the finances of many households.

Tags: Europe/Economy