UK food inflation hits nine-month high, Labour's welfare promises questioned.

The prices of essential food storage items and alcoholic beverages have risen, pushing UK food inflation to a nine-month high, and the Labour government is facing increasing political pressure due to the cost of living issues. The British Retail Consortium (BRC) said on Tuesday that food prices had risen by 2.4% in the year to March, faster than the previous 2.1% increase. The cost of ambient food (such as canned and bottled food) surged by 3.7%, significantly faster than the 2.8% increase in February. In addition to rising food prices, households are also facing increases in energy and water bills, as well as rising council taxes. The UK energy price cap is set to rise on April 1st, with the opposition accusing government officials of exacerbating the pressure on ordinary people's lives. With the Labour party making key promises to improve living standards, public perception of worsening living conditions poses a risk. A YouGov poll on Monday showed that only 12% of people believe the government has effectively dealt with the cost of living crisis, with eight out of ten respondents stating that shop prices are rising faster than income growthdespite official data showing a steady increase in real wages since the summer of 2023. Lower prices for grocery items in UK stores BRC CEO Helen Dickinson pointed out when the data was released, "The prices of both alcoholic and non-alcoholic beverages have risen due to tax adjustments and the delayed impact of high global sugar prices." However, BRC stated that overall store prices fell by 0.4% in March, mainly driven by double-digit deflation in clothing and footwear, reflecting "weak consumer demand." Dickinson warned that as retailers pass on cost pressures, store price inflation is likely to rise in the coming months. Starting in April, retailers will face a double blow from the increase in the national minimum wage and a sharp rise in employer National Insurance contributions.