Era of cheap food ends as prices surge

Steve Hawkes, Greg Hurst and Valerie Elliott

Families have been warned that the prices of basic foods will rise steeply again because of acute shortages in commodity markets.

Experts told The Times yesterday that prices of rice, wheat and vegetable oil would rise further. They also forecast that high prices and shortages — which have caused riots in developing countries such as Bangladesh and Haiti — were here to stay, and that the days of cheap produce would not return. Food-price inflation has already pushed up a typical family’s weekly shopping bill by 15 per cent in a year.

A further 15 per cent increase in the price of a standard Kingsmill loaf would push it up from £1.09 to to £1.24. Butter has gone up by 62 per cent in the past year. A similar rise would bring the price of a 250g pack to £1.52.

The price of rice, which has almost tripled in a year, rose 2 per cent on the Chicago Board of Trade yesterday as the United Nations food agency gave warning that millions faced starvation because aid agencies were unable to meet the additional financial burden

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