Rise in cost of sugar sparks further price rises

The cost of sugar has gone up. This has had the knock-on effect of contributing to price hikes for fizzy drinks, chocolate and sweets.

And the news is that prices have yet to peak.

Poor harvests in Europe and limited availability in North Africa have kept fruit and vegetable prices high too.

Helen Dickenson the chief executive of the British Retail Consortium (BRC) said “shop price inflation has yet to peak.”

“Food prices will likely rise in the coming months, particularly as we enter the UK growing season, but wider inflation is expected to remain high.”

Food inflation rose from 14.5 per cent last month to 15 per cent this month. Fresh food is at the highest rate on record at 17 per cent higher in March 2022.

Mike Watkins, the head of retailer and business insight at NielsenIQ, said “inflation continues to have an impact on the spending power of shoppers and increased energy bills from April will add more pressure.”

“Since food prices have risen retailers have seen more visits but less basket spend, as shoppers manage their weekly food bills by shopping little and more often and seeking out the lowest prices. As Easter approaches some high street retailers will also be offering discounts and promotions to encourage customers to spend.”

Shop prices are now 8.9 per cent higher than they were a year ago according to the BRC-NeilsenIQ index.

Thank you for taking the time to read this article. Do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram.

Source: https://news.sky.com/story/sugar-cost-rises-driving-food-prices-to-record-highs-12843534