June 30, 2008

Food prices have risen in the UK over the past year, with milk and dairy products leading the inflation chart.

Prices of milk and dairy products have increased 18.4 percent from 2007, higher than any other food products though meat, fish and poultry came close at 17.5 percent.

Overall grocery bills have jumped 10.3 percent, according to industry magazine The Grocer. The government said food inflation stands at 7.8 percent.

UK supermarket chain Asda saw the biggest price increase at 13 percent but they are still the cheapest of supermarket giants, now engaged in a price war to win consumers.

Staple lines are hit the hardest due to rising global wheat prices caused by poor harvests, according to analyst Darren Shirley of Shore Capital.