It all adds up

Inflation rises to 10.4% as food bills devour budgets

- GRAHAM HISCOTT

COST OF LIVING CRISIS

INFLATION jumped back up last month fuelled by the biggest rise in food prices for 45 years.

The Consumer Prices Index, which measures living costs, rose from 10.1% in January to 10.4% in February.

The increase defied widespread predictions that it would fall below 10%. 

The increase was driven in part by an 18.2% surge in the average price of food and soft drinks, the largest rise since August 1977, the Office for National Statistics confirmed.

Shortages of some fruit and veg because of supply issues from Spain and North Africa made matters worse.

The average cost of a kilo of tomatoes jumped by 19p in the past month alone, with iceberg lettuces up 5p.

ONS data also showed bananas, which supermarkets closely watch because of their popularity, rose in price by 4p last month.