United Kingdom-Meat prices increase.

UNITED KINGDOM.MEAT PRICES RISE.

Inflation is still hitting the weekly shop, with meat prices soaring, raising fresh fears of a squeeze on suppliers by supermarkets.

Asda and Tesco bosses had predicted that food price inflation had peaked and this month announced price cuts, including on meat.

But industry figures obtained by Financial Mail indicate the price of lamb is 18% higher than a year ago while beef is 15% dearer. Prices have risen because animal feed, transport and refrigeration costs have gone up and because of increasing demand.

The contradictory figures suggest supermarkets may turn the screws on suppliers to maintain their profits while keeping shelf prices low.