Food Prices Rise At British Supermarkets
The cost of food products at British supermarkets increased by nearly 3 per cent during the month of January according to new data released by The Grocer magazine.
The Grocer publishes a weekly price index, the results of which show that the average British family was forced to spend an extra £6 for a composite basket of goods. The 2.8 per cent increase in January is the largest increase in monthly prices in two years.
The reason for the increase according to the trade publication, is that supermarkets have been passing on the increase in VAT to shoppers, despite the fact that most food items are exempt from VAT.
“So much for falling food prices, this month’s Grocer price index figures put paid to any hopes that falling inflation would not be stalled by January’s VAT hike.” the report said.
“In theory the VAT shift should have had virtually no effect – most food is exempt from the 17.5 per cent tax – but as an investigation by the Grocer showed earlier in the month, retailers used the increase to pass on some price rises even on non-VATable items.”
Please Note - All Prices Quoted Are Correct at Time of Posting
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