Food prices have shown their first increase for nearly two and a half years. To me, this is no surprise and long overdue as the issue has been bubbling within suppliers for the last six months.
Brexit and the fall in the pound have been a big driver and, by and large, the majority of the increases are being passed onto the consumer. The next 6 to 12 months will tell just how price elastic the consumer is and whether there will be a flight to quality or to value.
Rising fuel and food prices helped to push last month's inflation rate to the highest since September 2013.Inflation as measured by the Office for National Statistics' Consumer Prices Index (CPI) jumped to 2.3% in February - up from 1.8% in January.The increase has pushed the rate above the Bank of England's 2% target. Food prices recorded their first annual increase for more than two-and-a-half years, standing 0.3% higher in February than a year earlier.