Cost of food soars to highest rate in 45 years (... but inflation's down)

FOOD prices rose at their highest rate in 45 years in December, official figures revealed today.

- Jonathan Prynn and David Bond

Although the consumer prices index measure of inflation fell for the second consecutive month, from 10.7 per cent in November to 10.5 per cent last month, food and non-alcoholic beverage prices rose by 16.9 per cent in the 12 months to

December. Driven by price increases for comfort foods like chocolate, sugar, jam and honey, as well as milk, cheese and eggs, the Office for National Statistics said indicative modelling suggests the rate would have last been higher in September 1977, when it was estimated to be 17.6 per cent.

Core inflation, which strips out energy and food prices, also failed to budge at 6.3 per cent leading some economists to suggest that inflation may be stickier than hoped.