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Friday, August 26

Food prices rises continue to outpace wages

The rise in food prices by 2 percent in July and 7.9 percent compared to July 2010 far outpaces the 1.9 percent increase in wages shown in the Labour Cost Index for the whole year to June”, says CTU Economist Bill Rosenberg.

“Vegetable prices which rose by 14.2 percent in just the one month and 26.5 percent in the year will make these essential foods increasingly unaffordable to low income households. Meat, poultry and fish prices also rose steeply by 3.7 percent in the month and 6.8 percent in the year.”

The food price rises hit low income households and families with dependent children harder than others. Combined with low wage increases, many people will be forced to go without important parts of their diets or scrimp on other necessary spending.

“These rises will make people more determined to get pay rises that keep up with the rising cost of living”, said Rosenberg.