Family food bills 'up £15 a week' - so what happened to the official 2% inflation? Print E-mail
By Socialist Appeal reporters   
Wednesday, 23 April 2008

food_prices_soar.jpgThe Brown government has been ruthless in attempting to keep workers’ wage rises to 2%, causing real pain amongst Britain’s poorest workers. Their justification was that inflation was only 2% and the “country” could not afford inflationary pay deals.

However, inflation is far higher than 2%, especially for low-paid families hit by rising gas, electricity, petrol and council tax bills. Millions will be affected by the scrapping of the 10p tax band. And now figures reveal that food bills for the average family have gone up by almost £800 a year in the last 12 months.

Families who have been squeezed by rocketing bills and higher mortgage and rent costs, are also facing a 15% rise in the cost of many basic foodstuffs, according to website Mysupermarket.co.uk.

Its survey of the price of 24 common items such as tea bags and pasta sauce at three major supermarkets showed that a family of four who were spending £100 on a weekly shop last April would be spending £115 a week now - or £780 more a year.

Many staple items have been hit by the rising price of wheat. This has had a direct effect on the cost of many basic items such as bread and pasta, and increased the price of food for livestock, which is passed on by farmers to consumers through higher prices for meat and dairy products.

The Mysupermarket.co.uk survey showed a 28p increase in the price of six pints of semi-skimmed milk at Tesco, Asda and Sainsbury's, with shoppers now paying £1.68 compared to £1.40 a year ago.

Egg prices at the three supermarkets have also increased by almost 50%, from £1.75 a dozen last April to £2.58 today, while the price of a block of cheddar cheese has risen by more than 25%.

A packet of fusilli pasta has nearly doubled from 37p to 67p, the survey found.

According to Mysupermarket.co.uk, over the past year the cost of a thick white loaf has gone up by more than 20%, from 54p to 65p, at both Tesco and Asda.

On top of this, shoppers could soon be paying another 10p for a standard white loaf after Associated British Foods, which makes Kingsmill bread, said it was in talks with retailers to raise prices.

"Once again we're seeing increases in the price of the average family's food basket, with wheat- and dairy-based products going up as much as 61%," said Johnny Stern, director, of the website.

"Many families already struggling under the pressure of rising costs are seeking ways to cut their grocery bills."

After 11 years of New Labour, there are still 3.8 million children living in poverty by the government's own calculation. The gap between rich and poor is increasing. With the rising cost of living, and wages held down, this gap will get even wider.

This is a natural consequence of the market economy. Only a socialist planned economy can resolve this problem by taking over the commanding heights of the economy and planning our resources in the interests of the majority of people. Only then can the increasing wealth created by the labour of society by fairly distributed and our living standards greatly enhanced.