| Food prices begin creeping upwards |
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| Wednesday, 04 May 2011 18:16 | |||
 The price of food in shops increased 1.2% between March and April, driven higher by the cost of fresh fruit, dairy products, eggs and cooking oils, according to British Retail Consortium (BRC).
 Food price inflation had slowed in March as retailers put on more special offers to attract cash-strapped consumers. This was one of the main reasons the consumer prices index (CPI) fell to 4% in March from 4.4% the previous month. Chris Crowe, an economist at Barclays Capital, expects the rising cost of food to help push CPI to 4.2% in April. The Bank of England's Monetary Policy Committee will announce on Thursday whether it is to raise interest rates from their record low of 0.5% in an attempt to curb CPI, which is more than double its target of 2%. Food prices are rising because so-called soft commodities, such as wheat, coffee and corn, have rocketed in value in the past year, partly as a result of growing demand from emerging markets such as China and India. The rising cost of food helped push the BRC's index of shop prices up to 2.5% in April from 2.4% in March. |
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