Families face food prices that rise even higher than they are now and stay high for some time, the boss of Asda warned today.
Tory peer Lord Rose said that rocketing raw material costs were going to hit a new permanent high level, which would have a knock-on effect in the aisles.
Sunflower oil, wheat and oil prices have been affected by the war in Ukraine, while gas prices were already going skywards before the conflict began in February.
This week it was revealed the price of groceries in Britain is now increasing at its fastest rate in 11 years, adding an extra £271 to the amount average households will pay at the till this year.
Data from market researcher Kantar showed that overall grocery price inflation hit 5.9 per cent this month in what is the fastest rise since December 2011 as the number of items on promotion at supermarkets decreased.
Prices are rising fastest in products such as dog and cat food, fresh lamb and beef, savoury snacks and crisps but they are falling in spirits - as surging prices cause the biggest squeeze on UK household incomes since the 1950s. Other products rising most rapidly include frozen potato-based products, canned colas, fresh poultry and milk.
Talking to the BBC today, Lord Rose was asked if 5.9 per cent was the ceiling of price rises. He replied: 'They are going to go higher and they are going to stay high for quite some time, I fear.'
It came amid the appearance of a Cabinet rift over whether to target oil and gas firms for a windfall tax on profits made while prices are high and consumers suffer.
Labour is pressing for the move, and last week Chancellor Rishi Sunak said he could 'look again' at a new levy as a way to help bring prices down.
But Business Secretary Kwasi Kwarteng said a new tax would be a 'disincentive' to investment.
Mr Kwarteng did not rule out the move being considered by the Government as a measure to alleviate the cost-of-living crisis. But he told Sky's Sophy Ridge on Sunday: 'I've never been a supporter of windfall taxes - I've been very clear about that publicly. I think they discourage investment.'
Tory peer Lord Rose said that rocketing raw material costs were going to hit a new permanent high level, which would have a knock-on effect in the aisles.
The Chancellor signalled he would 'look again' at the punitive levy as he faces pressure to act on the current cost-of-living crisis, which includes huge increases in the cost of heating and powering homes.
