Families are paying almost double for key food items compared to two years ago as soaring inflation and extreme weather continue to see prices skyrocket.
While overall inflation has fallen to 4.6 per cent, the lowest rate for two years, shopping basket staples like sugar, eggs and olive oil have continued to rise sharply in cost since October 2021, before the cost of living crisis hit.
Food inflation is also slowing, Tuesday’s official figures showed, but prices in general are around 30 per cent higher than they were two years ago, according to the Office for National Statistics (ONS).
Last September, food prices rose at their fastest rate in 42 years, squeezing household budgets, with the war in Ukraine, the weakness in the pound, extreme heat, flooding and rising energy bills among factors that hit prices.
As a result, the average price of a bottle of olive oil has almost doubled from £3.72 to £7.16, an increase of more than 90 per cent, ONS figures show.
Harvir Dhillon, economist at the British Retail Consortium, told i: “Olive harvests have been badly affected by weather conditions in several Mediterranean countries, including Spain, where the UK gets most of its supply. This has reduced the supply of olive oil, increasing prices.
“Weaker exchange rates have further increased the cost of importing olive oil.”
How food prices have risen in two years
A bottle of olive oil now costs £7.16 (92 per cent increase since October 2021)
A kg of sugar £1.16 (68 per cent increase)
A dozen free range eggs £3.30 (53 per cent increase)
Pint of milk 65p (51 per cent increase)
1 kg block of cheddar cheese £8.86 (40 per cent increase)
A kg of back bacon £9.53 (33 per cent increase)
A kg of chicken £3.86 (33 per cent increase)
A loaf of sliced white bread £1.36 (33 per cent increase)
A 250g block of butter £2.19 (28 per cent increase)
A kg of sausages £6.81 (27 per cent increase)
A kg of beef mince £8.35 (25 per cent increase)
A pint of lager £4.38 (13 per cent increase)
The average cost of a dozen eggs has risen by 53 per cent in two years, up from £2.15 to £3.30, while the price of 1kg of sugar has leapt by almost 70 per cent.
While cheddar cheese has fallen in price for the last five months, at £8.86 per kg, it is still two fifths dearer than it was in October 2021.
A loaf of sliced white bread has risen in price by a third from £1.02 to £1.36 in just 24 months. While a 250g block of butter is now £2.19 compared to £1.71 two years ago, up by more than a quarter.
Meat, too, has risen sharply, with 1kg of beef mince now costing £8.35, up by a quarter from its price of £6.66 two years ago.
A kg of chicken has increased in price to £3.86, up from £3.52 a year ago and £2.89 two years ago and a kg of sausages has soared in price to £6.81 from £5.33 two years ago, an increase of 27 per cent.
The Food and Drink Federation said extreme weather conditions have become a “significant challenge” in agricultural production.
“Droughts, extreme heat and flooding have significantly impacted olive yields, pushing olive oil prices up,” the spokesperson said.
“Spain, the leading world producer accounting for about 40 per cent of the global production, has seen extreme droughts over the past two years, while Italy, the second leading producer, was also hit by an extreme drought in 2022 and is yet to recover.”
Weather was also to blame for the high sugar prices as well. they added, with poor weather impacting sugar cane crops in main producers like Brazil and India and the European beet production last year.
“As global demand was fairly steady, sugar prices also rose substantially,” they added.
Food and non-alcoholic drink inflation remained just above double digits at 10.1 per cent last month, as prices remain substantially higher than a year ago.
But it was the lowest rate since June last year, providing some relief to households who have been squeezed by the higher cost of living.
A recent high of 19.2 per cent in March 2023 was the highest annual rate seen for more than 45 years.
Rajan Lakhani, a money expert at smart money app Plum, said of the latest inflation figures: “It may be good news today, but over the last two years the cost of energy is up 50 per cent and food prices are up too by almost a third, more than the average increase in earnings. It’s still a challenging environment for households.”
Shadow chancellor Rachel Reeves said the Government should not be “popping champagne corks” about the drop in inflation, with people still struggling with the cost of living.
“After 13 years of economic failure under the Conservatives, working people are worse off with higher mortgage bills, prices still rising in the shops and inflation twice as high as the Bank of England’s target,” she said.
