Food prices are still pushing upwards, according to the latest government figures, reflecting a global trend as raw material commodity prices are soaring.
The Retail Price Index (RPI) rose to 4.3% in November, up from 4.2% in October, reported National Statistics. The main factors influencing the RPI were increases to road fuel prices and increases from food and motor vehicle purchase costs, it said.
Meanwhile, the latest figures from the Confederation of British Industry (CBI) make gloomy reading, indicating a further slowdown in the economy.
The CBI's December industrial trends survey revealed that manufacturers planned to raise their prices at a similar pace to the last few months over the next quarter. Responses indicated they were still confident about passing on some of their rising energy and commodity costs.
Of the food manufacturers responding, the vast majority (83%) expected prices of home orders to rise. This was in direct contrast to those in drink and tobacco, which said prices would remain the same (62%). More than half of drink and tobacco producers (58%) expected volumes to remain the same.
More than half (52%) of food manufacturers said their total order books were below normal, while the majority (66%) reported export orders as normal. Around three-quarters (69%) said their present stocks of finished goods were adequate.
Excluding seasonal variations, 51% expected output volume to grow over the next three months, while 43% predicted it would remain the same.
In a separate report from the Sustainable Development Commission that looked into the impact of rising oil prices on food supply in the UK, the authors said that, as energy use in food processing was generally the second highest next to agricultural production, they expected manufacturers to be "impacted greatly" by rising energy prices. They said: "They need to look for energy efficiencies and product innovation."