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Inflation Rate Being Squeezed Higher

While officially the general rate of inflation may be just under 5% at the moment this is nowhere near the figure which is emerging from the food sector. It has today been announced that in general the cost of food in the UK is increasing by over 10% per annum - over twice the general rate of inflation. While must of the recent rise was attributed to an 11.9% rise in the cost of fresh produce, the sector is being squeezed higher and higher although there are less people able to cover the rise!

We are in one of the most difficult economic scenarios of all time - falling income in real terms and a rising cost of living. This means that inevitably something will have to give, whether it is the electronics sector (as reported by DSG) or the leisure sector where spare cash is at a premium or some other area of the economy.

The bottom line is that people need to eat but they cannot afford to pay the prices being charged at the moment. This is as a result of increased production costs on the ground with more and more businesses literally at breaking point with many in serious financial difficulties.

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