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Food prices in Britain to rise 5 pct due to extreme weather: economists

Source: Xinhua| 2018-08-28 01:01:14|Editor: Mu Xuequan
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LONDON, Aug. 27 (Xinhua) -- The price of meat, vegetable and dairy produce in Britain is set to rise by at least 5 percent as a result of extreme weather this year, economists warn Monday.

Extended spells of frigid and baking weather seen during the winter and summer will likely increase household food bills by an estimated 7.15 pounds (9.21 U.S. dollars) a month, according to the Centre for Economics and Business Research (Cebr).

The cold snap brought on by the Beast from the East has already been blamed for a slump in the economy at the start of the year, while some industries were adversely affected by heatwave conditions over the summer.

As a result, the growth of gross domestic product (GDP) fell to 0.2 percent in the first quarter.

The Cebr said domestic food production has been hit by weather extremes that have put "particular stress on farming costs and yields."

Between March and July, the wholesale "farm gate" prices of some staples rocketed by up to 80 percent.

The price of wheat for bread rose by a fifth, strawberries by 28 percent, carrots by 41 percent and lettuce by 61 percent.

The farm gate price of carrots rose by 80 percent, according to European Commission figures used by the economists.

Much of Britain's grain is imported from Europe, where record-breaking weather has also hit production, with the harvest expected to be 5 percent down in 2018.

The impact of the extreme weather is not limited to arable produce, with domestic dairy yields was also hit.

Poor grass growth saw production fall for 11 weeks in a row and the farm gate price of butter rise by just under a quarter since March.

The Bank of England's figures for the second quarter showed the economy had rebounded, however the hot weather was blamed in part for a slip in the country's services sector in July.

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