Staggering rate of inflation means cost of milk, cheese and eggs up by 29.7%

British households are facing the fastest annual increase in food and drink prices since 1977, the latest inflation figures from the Office for National Statistics show, as the soaring cost of basic essentials adds to pressure from sky-high energy bills amid the cost of living crisis.

Official figures show food and drink inflation reached 19.1% in March, far above the headline rate of 10.1% for the increase in the cost of an average basket of goods and services.

Prices have jumped about 25% in the past two years alone, cramming into just 24 months the same level of price growth seen over the preceding 13 years.

Experts say soaring energy costs and supply chain disruption set off by Russia’s invasion of Ukraine are the main reasons, alongside rising labour costs, bad weather affecting harvests, and Brexit trade barriers.

There are hopes prices could ease soon, after a drop in global wholesale food prices in recent months, including a 32.8 point fall in the Food and Agriculture Organization of the United Nations index from a peak in March 2022.

However, producers buy and sell using long-term contracts, making it harder for consumer prices to fall quickly.

There are also reports of “greedflation” – businesses fuelling inflation by profiteering – as manufacturers and retailers push through large increases in the price of essentials.

The price of some lines of staple foods such as cheddar cheese, white bread and pork sausages have soared by up to 80% in some shops over the past year, as much as eight times the headline rate of inflation.

The wholesale price of sugar has surged to the highest level in more than 10 years, doubling in the past two years alone. It comes after the worst sugar beet crop in Europe for 20 years owing to bad weather and poor harvests in Brazil and India, which have also dented supply. Surging energy costs have further stoked prices.

Sauces, condiments, salt, spices, culinary herbs – up 33.7%

Raw material costs for some of the UK’s favourite condiments have surged, including tomatoes, salt, and spices.

The cost of packaging, transportation and the energy used in manufacturing, have all risen sharply.

Heinz tomato ketchup has topped the charts as the biggest riser in a list of leading branded groceries, with the cost of tomatoes increasing by more than 100% for Kraft Heinz, the US manufacturer, and energy costs jumping almost 400%.

Milk, cheese and eggs – up 29.7%

UK supermarkets have cut the shelf price of milk in recent weeks as a “spring flush” – when cows naturally tend to produce more milk as they are let out into fields – helped to increase production.

However, prices remain significantly higher than a year ago after an increase in the wholesale market price to the highest level since 1970. It comes as the cost of all key milk production inputs has rocketed.