UK grocery inflation unchanged in Feb

British grocery inflation held steady last month, helped by supermarket promotions which shoppers are increasingly relying on to keep their bills low amid worries over the cost of living.

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Supermarkets have warned that tax rises in the new Labour government's first budget in October, together with another hike in the national minimum wage, will be inflationary this year.

Britain’s headline rate of inflation hit a 10-month high of 3 per cent in January and the Bank of England forecasts it will climb further to 3.7 per cent later this year, while industry researcher, the Institute of Grocery Distribution has forecast food inflation could hit nearly 5 per cent this year.