Food Prices and Food Poverty

Andrew Bridgen Excerpts

Monday 23rd January 2012 Commons Chamber

[Mrs Spelman]

No.

Let us get back to some facts. Retail food price inflation reached 6.9% in June last year and currently stands at 3.8%. In real terms, food prices have stayed at about the same level since the start of 2009, notwithstanding the fact that food price inflation has fallen below the general rate of inflation. I accept that we need to help those on the lowest incomes, who are spending more of their budgets on food.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does the Secretary of State agree that the major contributory factor to food price inflation is energy and fuel price inflation? They are indelibly linked.

[Mrs Spelman]

Shortly, my hon. Friend will hear me expand correctly on the analysis of what is driving food price inflation.

It is important to remember that in 2010 the average family spent 11.5% of its household budget on food. The figure is greater for low income families, at 15.8%, but it is coming down; the 2010 figures are 1% lower than two years previously. That is a very important fact—the trend is that household expenditure on food in the lowest income families is coming down.