How do people experience inflation?

The BBC reports that food prices in UK supermarkets and shops have risen by 8.3% since January. Meat and fish - up 22.9% - registered the biggest price increases for any one category in the survey, with fresh fruit and vegetables up 14.7%. Retail analysts Verdict Research also found price rises of nearly 50% for some individual food items. The figures come amid growing concern about the high cost of food, which is exceeding the official inflation rate. On Wednesday, the British Retail Consortium (BRC) said that food price inflation over the past year amounted to 10% - more than twice the official Consumer Prices Index (CPI) inflation rate of 4.4%. Other research has shown that prices of many other items (e.g. energy) have risen by significantly more than the headline rate of inflation. Link to BBC report

World Bank: rocketing food prices have put fight against poverty back 7 years

The World Bank attempts to put concerns about the credit crunch and falling house prices into some sort of perspective with a report about the difficulties faced by those in the devloping world caused by the steep increase in food prices. The price of wheat has risen by 120% in the past year, more than doubling the cost of a loaf of bread. Rice prices were up by 75%. The Bank's analysis chimes with research from the International Monetary Fund showing that Africa will be the hardest hit continent from rising food prices. More than 20 African countries will see their trade balance worsen by more than 1% of GDP as a result of having to pay more for food.

http://www.guardian.co.uk/business/2008/apr/10/worldbank.fooddrinks

See Geoff Riley's Chart of the Day:

http://www.tutor2u.net/blog/index.php/economics/chart-of-the-day-eu-wheat-bread-and-cereal-prices/#When:13:20:01Z