Food and drink prices soared at the fastest annual rate in over 45 years to 19.1% in March, keeping UK inflation above 10%.
The Office for National Statistics (ONS) said inflation fell to 10.1% in March, down from 10.4% the month before.
However, according to reporting by The Guardian, city economists had predicted a drop to 9.8%.
The dip in inflation was mainly attributed to motor fuel prices and heating oil costs, however, ONS chief economist, Grant Fitzner said “these were partically offset by the cost of food, which is still climing steeply.”
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McKinsey & Company consumer pricing practice partner and global leader, Kevin Bright added: “Prices remain stubbornly high – we’ve only fallen back to January’s price inflation rate. In short – prices are continuing their steep upward trajectory.
“In spite of many global commodity prices easing dramatically over the last year, e.g., dairy, vegetable oil and cereals, we’re not seeing this trickle through into the price of products on the shelves.”
The ONS said that prices of chocolate, confectionary, fruit and meat all rose, and in particular, ready meals, sauces and hot beverages soared at the fastest annual rate since records began in 1989.
Bright said that this “continues to influence purchasing behaviour, pushing the ongoing migration from frozen to fresh,” adding that fresh fish prices are up 19% year on year, compared to frozen seafood which is up 12.2%.
Research from Kantar has also found that many frozen products are doing ‘notably better’ than their fresh counterparts, with demand strongest for items such as frozen chicken which has seen volumes rise by 5.9%, while sales of frozen prepared foods including ready meals, pizzas and chips increased by 2.6% in March.
