Food Prices Soar, Millions Face £290 Annual UK Hike, Japan Poverty Worsens

Experts and the Bank of England warn that food prices in the UK are set to rise significantly, potentially increasing average household food bills by around £275 to £290 by Christmas. Food inflation, currently around 4%, is expected to peak at over 5.5%, driven by rising energy, labor, and transport costs, as well as government policies such as increased National Insurance contributions and minimum wage hikes. These cost pressures disproportionately affect low-income families, with many struggling to afford basic groceries, leading to increased demand for food assistance and hardship support. The Bank of England's recent decision to cut interest rates to 4% benefits mortgage holders but may negatively impact savers, and overall inflation is forecasted to reach 4%, double the target rate. Retailers and economists caution that upcoming tax hikes and new packaging taxes could further exacerbate food price inflation. Charitable organizations report growing challenges in meeting the needs of families, with shortages of staple foods and concerns about children's health amid rising costs.