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| UK inflation: Chocolate price rises hit record as food costs grow | |
| (about 1 hour later) | |
| Chocolate prices in the UK rose at the fastest pace on record in May as the overall cost of food continued to climb, official figures suggest. | |
| The main rate of inflation remained at 3.4% in the year to May. | |
| However, food prices grew for the third month in a row, as some economists speculated that businesses were passing on recent increases in employer National Insurance payments to customers. | |
| The rise, along with a higher minimum wage, came into effect in April, after Chancellor Rachel Reeves announced the increases in last October's Budget aimed at raising £25bn. | |
| Food prices have risen for three months in a row and, at 4.4% in May, are the highest since February last year. | Food prices have risen for three months in a row and, at 4.4% in May, are the highest since February last year. |
| Ruth Gregory, deputy chief economist at Capital Economics, suggested that the increase "perhaps provides a tentative sign that firms are passing on more of April's rise in National Insurance Contributions in their selling prices". | Ruth Gregory, deputy chief economist at Capital Economics, suggested that the increase "perhaps provides a tentative sign that firms are passing on more of April's rise in National Insurance Contributions in their selling prices". |
| Chocolate in particular has been affected by bad harvests in cocoa-producing regions, as bad weather hit Ghana and Ivory Coast. | |
| Chocolate stocks fell to all-time lows earlier in the year, making the price surge. | |
| In the year to May, chocolate prices rose by 17.7%, according to the ONS. This is the fastest pace since 2016 when the ONS's records began. | |
| Rising food inflation was partially offset by cheaper travel prices in May. | |
| The Office for National Statistics said that the cost of plane tickets fell compared with a large rise last year "as the timing of Easter and school holidays affected pricing". | |
| The overall pace of price rises in May was the same as in April, following a revision by the Office for National Statistics (ONS), and means that inflation remains at its highest for more than a year. | |
| Inflation is above the Bank of England's target rate of 2% but it is not expected to cut interest rates when it meets on Thursday. | |
| Commenting on the inflation rate, Chancellor Rachel Reeves said: "This government is investing in Britain's renewal to make working people better off." | Commenting on the inflation rate, Chancellor Rachel Reeves said: "This government is investing in Britain's renewal to make working people better off." |
| But shadow chancellor Mel Stride called the latest inflation figures "deeply worrying for families". | But shadow chancellor Mel Stride called the latest inflation figures "deeply worrying for families". |
| "Labour's choices to tax jobs and ramp up borrowing are killing growth and stoking inflation - making everyday essentials more expensive," he said. | "Labour's choices to tax jobs and ramp up borrowing are killing growth and stoking inflation - making everyday essentials more expensive," he said. |