Food price rises 'to hit UK hard'

Aurora · Post by **Aurora** » 20 May 2008, 06:14

BBC News - 19/05/08

The UK is "more exposed" to rising food price rises than its peers, adding to recessionary fears, according to a report by Ernst & Young.

Its Item Club says "the implications for business are profound" - making it more likely firms will raise prices.

Unlike the US which has a balance of food and France which has a surplus, the UK has a trade deficit in food.

Article continues ...

Also: http://www.guardian.co.uk/business/2008 ... erestrates

contadino · Post by **contadino** » 20 May 2008, 07:43

Guardian wrote:A report by the Ernst & Young Item club, which uses the Treasury model to forecast the economy, urged the chancellor, Alistair Darling, to exclude food and energy from the inflation target or risk excessive pain for voters in the run-up to the election.

...leaving price changes in just replacement inner soles and in-car air fresheners as the basis for future inflation calculations.

RogerCO · Post by **RogerCO** » 20 May 2008, 09:31

contadino wrote:
Guardian wrote:A report by the Ernst & Young Item club, which uses the Treasury model to forecast the economy, urged the chancellor, Alistair Darling, to exclude food and energy from the inflation target or risk excessive pain for voters in the run-up to the election.
...leaving price changes in just replacement inner soles and in-car air fresheners as the basis for future inflation calculations.

So it is all right for prices to go up just so long as it is not in the inflation number because it is the number that hurts voters not the prices

I think what he meant was that Darling himself is at risk of excessive pain from voters at the election.

Blue Peter · Post by **Blue Peter** » 20 May 2008, 09:42

I very much doubt that the members of the Ernst and Young Item club care a fig for the general public. They simply care for their corporate members who would like to see lower interest rates and who fear that the government's CPI target may prevent them from getting reductions. Nice...

Peter.

Neily at the peak · Post by **Neily at the peak** » 20 May 2008, 10:57

I think what they may be saying is if you exclude food and fuel prices then you can bring down interest rates, to avoid a double whammy!!

Neil

Tracy P · Post by **Tracy P** » 21 May 2008, 08:27

My mum says that she can no longer feed and heat herself on her pension. She only shops in charity shops, her house is usually about 12 degrees (no kidding) and she is now dipping into her savings because of the price of food....
but thats ok, our government is building a really really nice olympic area.
thats ok then

Tracy