Despite the recent fall in the RPI rate of inflation (which includes housing costs) to 0%, the British Retail Consortium (BRC) report that shop price inflation rose to 2% in March from 1.9% in February.
BRC estimate that within this figure is a food inflation figure of 9%, resulting from a weaker pound attracting foreign buyers of British sourced food.
In the short term it is likely that the major supermarkets will absorb much of this increase. However, as time progresses, they will start to pass this on to the consumer via smaller/poorer quality food products and higher prices.
The outlook for the average Birtish family is not good.