Cost of pork risen by a quarter

BACON'S UP 25 PER CENT

The rising cost of pork is leaving families pig sick.

Pork products have jumped by a quarter, pushing up the cost of a full English breakfast.

And the leap is feeding into higher food prices, likely to be bad news if the Bank of England delays an interest rate cut to keep a lid on inflation.

Food bills have jumped by a record 10 per cent in the past year, according to British Retail Consortium figures. But it's not just the weekly shop where families are being hammered.

High street prices as a whole have risen by an unprecedented 3.8 per cent in the past year. Compare that with last August when prices were rising by 0.4 per cent. Since then oil prices and raw material costs have rocketed to record highs. Clothing, footwear, electrical items and books all rose in price last month after falling in July.

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And prices in DIY shops, garden centres and chemists accelerated.

Combined with a massive round of energy price increases, the cost of living is set to be pushed up even higher.

Inflation is already more than double the government's two per cent target.

The Bank of England needs to bring it down before it can drop rates. But with the economy on the brink of recession, unemployment rising and consumer confidence at a record low, there is pressure to act fast.

Mike Watkins, from market analysts Nielsen, said: "Shop price inflation is likely to continue through the autumn but we are hopeful the acceleration in cost prices is starting to slow."

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