Beef drives food inflation to highest in a year

Higher beef and fresh produce prices pushed UK food inflation up for the fourth month in a row to an annual high, according to industry data.

Food prices increased 2.8% in the year to May, up from 2.6% in April, the British Retail Consortium (BRC) said.

Helen Dickinson, chief executive of the BRC, which represents supermarkets and other retailers, said shops were passing on the costs of higher minimum wages and increased employer National Insurance contributions.

Nick Allen, of the British Meat Processors Association, told the BBC the price of beef had risen to "record levels" due to strong demand and lower supply.

He said competition between supermarkets had previously been keeping the price of beef down, so it was only a matter of time until customers were hit by cost increases.

"Its not surprise. The farm price for beef has been going up and up to the point that its now at record levels," Mr Allen said.

He warned it was a "real struggle" for the industry to keep up with demand for beef, and claimed that "government schemes have not supported production but environmental schemes instead".

Jilly Greed, a fourth generation arable farmer and suckler beef producer in Devon, told the BBC: "It is entirely the maths - it's about supply and demand."

"There's a 5% shortfall in cattle on the land, and a 1% increase in consumer demand, and the combination of those factors have really brought price increases," she added.

Ms Greed said price increases have affected the whole supply chain.

The BRC said red meat eaters "may have noticed their steak got a little more expensive" this month.

Tomas Maunier, co-founder of steak restaurant chain Fazenda, said his firm had passed on about 2% of increased running costs to customers.

"Beef in particular has gone up about 20% in the last 12 months. A big chunk of that has happened in the last six but businesses cannot pass it all on to our guests," he added.