Last updated 01:05, Wednesday, 27 August 2008

More expensive bacon and sausages powered food inflation to 13.7 per cent in July, its highest reading since records began.

Pig sick of high prices? Meat, especially bacon and sausage, has helped push food inflation to its highest reading since records began

Meat costs including bacon, ham and poultry products soared 16.3 per cent year-on-year in July, data from the Office for National Statistics (ONS) showed.

Dearer food as a whole weighed in with nearly half the 0.6 per cent in the overall rise in the Consumer Prices Index last month, taking what is the official rate of inflation up to a new high of 4.4 per cent.

The ONS said retail prices for back bacon rose 13 per cent to £8.48 per kilogram, while best mince soared 19 per cent to £5.77.

Pork sausages were nine per cent dearer per kilo at £3.92, while fresh chicken jumped 35 per cent to £3.02.

There were also big increases for bread and cereals, up 15.9 per cent, milk, cheese and eggs which rose a massive 19 per cent and vegetables which shot up 11.1 per cent over the past year.

Rampant food inflation is likely to remain for the rest of the year as recent higher oil prices trickle down to farmers and producers, an economist said.

National Farmers’ Union economist Richard George said the rises have been driven by higher oil or oil-linked products such as feed, fertiliser and fuel for farmers and producers.

This is despite oil prices easing around 25 per cent since last month’s 147 US dollar a barrel high.

“Farmers are seeing a relentless pressure on key items which are either fuel or linked to fuel,” Mr George said.

“That remains the biggest issue and it takes time for these factors to make their way through the system.

“We are still halfway through that process, and that’s why we see this trend in inflation continuing for the rest of the year.”

Another survey earlier this month showed fresh food inflation soared into double figures last month as sky-high oil and commodity costs filtered down to producers, a survey showed today.

The British Retail Consortium-Nielsen Shop Prices Index (SPI) revealed that fresh foods were 10.8 per cent dearer in July compared to a year ago.

The figure rose from 8.4 per cent in June, and has more than trebled over the past 12 months.

Annual inflation for all food was 9.5 per cent last month, the survey showed, while ambient foods – including tinned and other longer-lasting items – showed a 7.4 per cent rise.