Millions of Families Face £ 290 Food Bill Hike, and There Could Be Worsse to Come

RISING FOOD BILLS ARE A BIG DRIVER OF INFLATION WHICH COULD DELAY THE TIMING OF FUTU

SOARING FOOD PRICES COULD ADD AROUND £ 290 TO THE AVERAGE FAMILY’S ANNUAL FOOD BILL.

The Bank of England Decidated by the Narrowest of Margins to Cut interest rate from 4.25% to 4%. Its nine-member monetary policy commmittee voted five to four to reduce borrowing costs to its Lowest Level for More than Two Years. That was after having re-trun the vote for the first time ever.

The Bank’s Fifth Cut Since Last August Will Benefit More than a Million Borrowers With Variable Rate Mortgages, and Another 900,000 Whose Cheap Deals Will Expire by the Year. Howver, Millions of Savers Will Be Hit if Providers Reduce What they Have A Result.

The Cut Came Despite the Bank Warning Inflation is Set to Hit 4% by September, Double Its 2% Target.

One of the Biggest Drivers is a worrying return of Higher Food Prices, Giove Groceres Account for Just Over A Tenth of Over Living Costs, and Event in Lower Income Households. The Bank Forecast Food Price Inflation Wauld Jump from 4.5% to 5.5% by the end of the year. With the average Household Spanding £ 5,283 EACH YEAR ON GROCERIES, THIS PREDICTED RISE COULD ADD £ 290 TO BILLS IF HOUSEHOLDS DON’T THEIR SHOPPING HABITS.

In a Blow for Chancellor Rachel Reeves, the Bank Laid Some of the Blame for the Spike on April’s Jump in Employers’ National Insurance and the National Wage. “These material increes in labour Costs are liked to have flush up, ‘Said the bank, estimating they have added between 1% and 2% to food inflation and with more exced to flow Through. And it added: “To reduce the need for higher prices, many firms along the suply chain to mitigate cost increas, including through reductions in headCount” – in other Words Job Losses.

Global Farming Costs Have Also Risen, Partly Driven by Extreme Weather, while a new Recycling Tax is Beginning to Bite, The Bank Explained.

Some Products are Rising Faster in Price Than Others. One Example is Tea and Coffee, with Data from the Website Trolley.co.uk Showing a 300g Jar of Nescafe Instant has gone from an average £ 5.02 in december to £ 5.27 Last month, while a 160 bag of yorkshire tea whic has surged 14.6% from £ 5.19 to £ the past year.

High Street Bosses Are Now Warning that a Shake-Up of Business Property Taxes Could “Fan the Flams of Food Inflation.” The Government is Proposing to Overhaul Business Rates – A Tax That Goes to Local Authorities – To Make It Fairer for Smaller Shops but what Likely to Mean Higher Bills for Large Storys and Warehouses.

Helen Dickinson, Chief Executive at the British Retail Consortium, Said: “The Bank of England Report Outlines How the Last Budget to Push up Food Prices. Government Policy Add £ 7Billion to this year, from Higher Emploment Costs to the Introduction Packaging Tax. Treasury’s Decisions. ”

She went on: “while retailers are doing andying they can shield their customers from rising prices, their ability to absorb stirate costs is extrmely limited. Many Supermarkets – THEN IT WILL BE ORDINARY HOUSEHOLDS WHO SUFFER The Most. ”