The report examines changes to the 12-month rolling average rate of inflation for selected food groups in the 27 EU member states, comparing the rate in February 2008 with the same month of 2007.

* "Disposable incomes in some Eastern European countries rose during the year, giving consumers increased purchasing power and this has led to increased demand..."

Tracey Richardson, AHDB Market Analyst.

The results of the analysis, by the Agriculture and Horticulture Development Board (AHDB) Meat Services, showed prices of milk, cheese and eggs rose by almost seven per cent in the 12 months ending February 2008, compared with only one per cent during the 12-month period before that.

Cereal-Based Foods Higher

Prices of bread and cereal-based foods also recorded much larger price rises than a year earlier, influenced by tightening global supplies of grains. In contrast, meat and fish prices rose by only three per cent over the twelve months to February this year, up from two per cent in the previous twelve months.

Eastern European countries have suffered the most from food price rises over the last year, with Bulgaria and Latvia recording food inflation at around 16 per cent in February, compared with an EU-27 average of four per cent.

AHDB Market Analyst Tracey Richardson says the results also indicate changed in consumer spending patterns. And a review of changes in household expenditure over the last 50 years, to mark half a century of the Expenditure and Food Survey, is also included in the report.

"Disposable incomes in some Eastern European countries rose during the year, giving consumers increased purchasing power and this has led to increased demand. But reduced grain yields can't be discounted as an influence," she added.

The report on EU food inflation forms part of the March 2008 edition of Meat Demand Trends from the Economics team at AHDB Meat Services. For a copy, contact:
Jayne Dines Tel.01908 844396 or email [email protected]