'Bitter taste' as cost of sugar hits Easter eggs and hot buns, UK retailers say
A spike in the cost of sugar in global commodity markets is responsible for soaring the price of chocolate eggs and hot buns ahead of the Easter weekend celebrations.< /p>< p class="dcr-n6w1lc">Global food market figures show that the main ingredients of traditional festive treats - butter, eggs, cocoa and sugar - have increased month on month since last summer, the high six-year sugar.
The British Retail Consortium, which represents many of the UK's biggest chain stores, said consumers would have a "bitter taste" if they expected chocolate Easter bunnies to be available at discounted prices.
He blamed soaring raw material costs and energy for a 12.4% year-on-year increase in March of "ambient" foods found on supermarket shelves, including com took all forms of chocolate. Overall annual food inflation hit a record high of 15% in March, the BRC said.
Fresh food prices have risen further from last year - up 17% from 16.4% in the previous month - after the salad crisis inflated the cost of peppers, tomatoes and cucumbers for a second month.
While the spread of bird flu and rising energy costs are responsible for soaring egg prices, crop failures in Brazil and India last year - as well as a decade of underinvestment - explain the shortage of sugar.
A drought in North Africa and Spain this winter drastically reduced the amount of fruit and vegetables offered in supermarkets, driving up their price.
However, the spike in sugar prices is likely to be temporary, after a he harvest on Brazilian sugar plantations in recent months and a recovery in sugar beet yields on European farms that could result in a glut this summer.
Helen Dickinson, chief executive of the BRC, said in-store prices would likely continue to rise for a few more months before peaking.
"As Easter approaches, the Rising cost of sugar with high manufacturing costs has left some customers with a sour taste as price hikes for chocolate, sweets and soft drinks spiked in March,” she said.
>"Fruit and vegetable prices also rose as poor harvests in Europe and North Africa worsened availability, and imports became more expensive due to the weakening of the pound. pageElements.NewsletterSignupBlockElement" class="dcr-173mewl">skip newsletter promotion
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Non-food inflation covering clothing, furniture and electrical appliances accelerated to 5.9% in March from 5.3% in February, the BRC said. fi and game consoles would likely find "better deals were available," Dickinson added. dial up commodities as an excuse to raise prices - a practice known as greed.
Analysts say commodities such as sugar only account for 'a small proportion of the retail price, which is more heavily dependent on transportation, warehousing and labor costs.
Headline consumer price inflation has reached 10.4% last month, surprising city leaders who thought it would fall from the 10.1% level in January, largely in response to falling gas prices.
A spike in the cost of sugar in global commodity markets is responsible for soaring the price of chocolate eggs and hot buns ahead of the Easter weekend celebrations.< /p>< p class="dcr-n6w1lc">Global food market figures show that the main ingredients of traditional festive treats - butter, eggs, cocoa and sugar - have increased month on month since last summer, the high six-year sugar.
The British Retail Consortium, which represents many of the UK's biggest chain stores, said consumers would have a "bitter taste" if they expected chocolate Easter bunnies to be available at discounted prices.
He blamed soaring raw material costs and energy for a 12.4% year-on-year increase in March of "ambient" foods found on supermarket shelves, including com took all forms of chocolate. Overall annual food inflation hit a record high of 15% in March, the BRC said.
Fresh food prices have risen further from last year - up 17% from 16.4% in the previous month - after the salad crisis inflated the cost of peppers, tomatoes and cucumbers for a second month.
While the spread of bird flu and rising energy costs are responsible for soaring egg prices, crop failures in Brazil and India last year - as well as a decade of underinvestment - explain the shortage of sugar.
A drought in North Africa and Spain this winter drastically reduced the amount of fruit and vegetables offered in supermarkets, driving up their price.
However, the spike in sugar prices is likely to be temporary, after a he harvest on Brazilian sugar plantations in recent months and a recovery in sugar beet yields on European farms that could result in a glut this summer.
Helen Dickinson, chief executive of the BRC, said in-store prices would likely continue to rise for a few more months before peaking.
"As Easter approaches, the Rising cost of sugar with high manufacturing costs has left some customers with a sour taste as price hikes for chocolate, sweets and soft drinks spiked in March,” she said.
>"Fruit and vegetable prices also rose as poor harvests in Europe and North Africa worsened availability, and imports became more expensive due to the weakening of the pound. pageElements.NewsletterSignupBlockElement" class="dcr-173mewl">skip newsletter promotion
after newsletter promotion
Non-food inflation covering clothing, furniture and electrical appliances accelerated to 5.9% in March from 5.3% in February, the BRC said. fi and game consoles would likely find "better deals were available," Dickinson added. dial up commodities as an excuse to raise prices - a practice known as greed.
Analysts say commodities such as sugar only account for 'a small proportion of the retail price, which is more heavily dependent on transportation, warehousing and labor costs.
Headline consumer price inflation has reached 10.4% last month, surprising city leaders who thought it would fall from the 10.1% level in January, largely in response to falling gas prices.
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