Food inflation in March rose to its highest level in six months, new figures show, with soaring fruit prices a major driver of the increase.

Data from the Office of National Statistics showed fruit prices were rising by 8.6% year-on-year last month, contributing to an overall rate across the sector of 3.4%.

Inflation on food stood at 3% in February.

Sugar, confectionery and conserves were climbing by 5.4% year-on-year last month, while prices of hot beverages were rising by 6.6%.

“We have argued for sometime that the UK food industry would not recede to material and sustained deflation and we continue to stand by this,” said Shore Capital analyst Clive Black.

“While not expecting a rapid return to the sort of high inflation (10%+) of the 2007-9 period, we do believe that inflation will remain within the 1%-3% range for 2010.”

Read more
Retail Prices: Forget the blip in produce, the trend is downhill (3 April 2010)
Food inflation lowest in three years, says BRC (3 March 2010)

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