UK - Food Prices Continue to Surge as Inflation Remains at 3.8%

Food price inflation rose for the fifth month in a row in August with costs rising at the fastest pace since the beginning of last year, official figures show.
The cost of food and non-alcoholic drinks grew at an annual rate of 5.1% as beef, butter, milk and chocolate prices continued to surge.
However, despite the increase in food costs, price growth in other areas such as air fares slowed, leaving the overall rate of UK inflation at 3.8% - the same as July.
Economists said food bills have been rising because supermarkets were passing on government increases in the minimum wage and National Insurance Contributions (NIC) to shoppers through higher prices.
Overall inflation remains above the Bank of England's 2% target and expectations are growing that its rate-setting committee will hold interest rates on Thursday.
Chancellor Rachel Reeves, who will set out the government's tax and spending plans in the Budget on 26 November, said that she knew "families are finding it tough and that for many the economy feels stuck".
She added: "That's why I'm determined to bring costs down and support people who are facing higher bills."
In her first Budget last year, Reeves announced an increase in National Insurance Contributions for employers as well as a rise in the minimum wage.
The decision led to a backlash from many businesses, who argued it would lead to higher prices for customers.
Reeves previously told firms after she would not be "coming back with more borrowing or more taxes", but speculation is growing over what taxes the chancellor will hike.
Shadow chancellor Sir Mel Stride said price growth was "deeply worrying for families" and said Labour's tax policies are "stoking inflation".
The Office for National Statistics (ONS), which publishes the figures, said the 5.1% increase in food and drink prices is the highest rate for 19 months.
It also said that inflation in the UK was "significantly higher" than the estimates for large European economies such as France and Germany.
In August, France's inflation was 0.8% while Germany recorded price growth of 2.1%.
Yael Selfin, chief economist at KPMG UK, said Britain had become "an outlier in recent months on inflation compared to other major economies".
She said: "Since April, the rise in inflation has been driven largely by domestic policy choices, including the increase in employers' National Insurance Contributions.
"These higher costs have been passed on by businesses to consumers, feeding through into higher headline inflation."
Some food items have continued to see particularly big increases. In the year to August, beef and veal prices were up nearly 25%, while butter prices grew by nearly 19% and chocolate rose by 15.4%.
The British Retail Consortium (BRC) said that food costs were outstripping average wage growth, which the ONS said reached 4.7% between May and July.

Source - BBC News/Dearbail Jordan