Inflation of food prices may affect the average family more than an increase in other areas of the household, one expert has suggested.
Director of financial information company The Motley Fool David Kuo said groceries are the fourth biggest spend in the average British family and a rise in the price of food could have a serious effect.
He remarked: “Food is top priority and families will initially look at cheaper cuts of meat followed by any meat that’s edible and affordable.”
Debt management is key, Mr Kuo added, as many families will have to cope with lower levels of wage inflation and – in some cases – examples of wage deflation.
In 2010, the cost of produce is only going to go up, he stated, with the current weakness in the pound causing imports to be pricier.
According to figures from the Department for Environment, Food and Rural Affairs, a recent decline in food purchases is likely to be linked with an increase in costs on most products.
By Francis Finch