Fruit and veg shortage stokes inflation
UK inflation has risen to its highest level for almost two years at 3.3%. The Office for National Statistics said that part of the rise was due to bad weather in June, which caused a shortage of vegetables and fruit and forced up fresh food prices.
However, seasonal food prices fell by 2.9% in July, compared with June, and fresh food prices had dropped 9.1% in July 1996. The steep fall has dropped out of the indexs 12-month average, so seasonal food showed an annual fall of just 0.7% against Junes annual fall of 7%.