Food prices to rise in U.K after floods

Vietnam News.Net
Monday 30th July, 2007

U.K economists say damage done to Britain’s farmland by the floods of the past two months is bound to trigger a surge in supermarket prices of many seasonal crops.

Some British farmers are facing the prospect of sharp cuts in produce volumes for the rest of this year after some of the most devastating summer rainfall since records began.

The supply shortages could fuel already sharp recent increases in the cost of food on supermarket shelves and spark a resurgence in inflation just as it was starting to fall back towards the 2 per cent target.

Economists are divided over the likely extent of the price effect from the floods damage to farming, but on previous disaster statistics, the rise should be in the vicinity of nine percent.

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