Families warned of spike in food poverty with price of butter set to jump by 60%

The cost of living crisis will cause a sharp rise in food poverty, families have been warned.

This is according to retail analysts at Peel Hunt, who predict food inflation could top 10% this year.

Data from Kantar showed grocery prices were up 5.2% in March with cost increases already hitting consumers.

Producer prices for cupboard staples such as milk, barley and pork were up by a fifth by the end of March.

The cost of wheat and cooking oil has also soared because of the war in Ukraine – but experts say further hikes are on the way.

Butter could rocket by 60% by the end of the year, they said.

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"The 30-year improvement in living standards due to stable and reducing food prices is reversing,” said Charles Hall of Peel Hunt.

"Food inflation increased 5.2% in March but will rise sharply as the impact of the war is felt."

Mr Hall added: "It may be painful in the UK, but that's nothing compared to the increase in the cost of living in a number of countries, particularly those with a high level of imports from Russia and Ukraine."

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Lindsay Boswell, of food charity FareShare, said: "Many families are now experiencing added hardship.

"We're calling for more support for those struggling to feed themselves, and more donations of food from across the food industry."

The Peel Hunt report also found palm oil prices are up 75% and coconut oil 30%.

Cotton prices have risen 130% year-on-year.

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Fuel, energy and travel bills have also been rising steadily in recent months.

The rate of Consumer Prices Index (CPI) inflation was today confirmed to have hit a fresh 30-year high in March, reaching 7% and up from 6.2% in February.

It was once more the highest point since March 1992, when inflation stood at 7.1%.

The rise was higher than the 6.7% that analysts had expected and was driven by fuel, restaurant and food prices.

But the increase does not take into account the average 54% increase in energy bills that was applied to around 22 million households two weeks ago.

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This will not appear in inflation figures until next month.

The April data is expected to show another jump in inflation and demonstrate the increased squeeze on ordinary people.

The Bank of England has predicted that inflation could peak at around 8% in April once the energy price cap increase is factored in.

Inflation is the rate at which prices for goods and services rise.

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