{"id":279148,"date":"2025-09-17T21:05:27","date_gmt":"2025-09-17T20:05:27","guid":{"rendered":"https:\/\/www.newsisc.com\/videos\/problems-for-rachel-reeves-ahead-of-november-budget-as-food-inflation-ticks-up-itv-news\/"},"modified":"2025-09-17T21:05:27","modified_gmt":"2025-09-17T20:05:27","slug":"problems-for-rachel-reeves-ahead-of-november-budget-as-food-inflation-ticks-up-itv-news","status":"publish","type":"post","link":"https:\/\/www.newsisc.com\/videos\/problems-for-rachel-reeves-ahead-of-november-budget-as-food-inflation-ticks-up-itv-news\/","title":{"rendered":"Problems for Rachel Reeves ahead of November budget as food inflation ticks up | ITV News"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/i4.ytimg.com\/vi\/GNAt7HvArhc\/hqdefault.jpg\" alt=\"Problems for Rachel Reeves ahead of November budget as food inflation ticks up | ITV News\"><br \/> <iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/GNAt7HvArhc\" frameborder=\"0\" allowfullscreen><\/iframe> <\/p>\n<p>The headline annual rate of inflation in the UK held steady in August.<\/p>\n<p>Prices are still rising by 3.8% a year &#8211; the same pace as in July &#8211; but that\u2019s faster than the Bank of England is willing to tolerate.<\/p>\n<p>The Bank\u2019s job is to keep inflation low and stable at 2%.<\/p>\n<p>One year ago, inflation was below that target.<\/p>\n<p>The \u201ccost of living\u201d has been steadily driven higher by repeated increases in the prices of fuel, food, and energy, as well as some one-off jumps in water bills and vehicle excise duties.<\/p>\n<p>\u201cI know families are finding it tough and that for many the economy feels stuck. That\u2019s why I\u2019m determined to bring costs down and support people who are facing higher bills,\u201d the Chancellor said in a statement this morning.<\/p>\n<p>The government is under intense scrutiny about its management of the economy.<\/p>\n<p>Ministers point out that by increasing the national minimum wage, freezing bus fares and making free school meals more readily available, the government is \u201cputting money in people\u2019s pockets\u201d &#8211; as it likes to say.<\/p>\n<p>The uncomfortable truth is that inflation in the UK is much higher than in either the Eurozone (2.1%) or the US (2.9%) and that government policy has also put upward pressure on prices.<\/p>\n<p>Food and drink inflation in the UK rose for a fifth consecutive month and is running at 5.1%, materially higher than the run rate of 1.5% before Covid.<\/p>\n<p>The weather \u2013 there have been droughts in Brazil and poor harvests across Europe \u2013 has played a role, but supermarkets and food producers say decisions the Chancellor made in her Budget last October have added 1\u20132% to food prices across the board.<\/p>\n<p>The increases, in April, to the national minimum wage and employer national insurance contributions have saddled businesses with higher costs \u2013 one way they have responded is by increasing prices.<\/p>\n<p>Last month, the Bank of England said a new packaging scheme designed to reduce waste, introduced by the last government but adopted by this one, will push food prices up further.<\/p>\n<p>It expects food inflation to peak at 5.5% at Christmas before falling gradually in 2026. Higher food prices get noticed because they hurt, and hurt those on lower incomes in particular.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The headline annual rate of inflation in the UK held steady in August. Prices are still rising by 3.8% a year &#8211; the same pace as in July &#8211; but that\u2019s faster than the Bank of England is willing to tolerate. The Bank\u2019s job is to keep inflation low and stable at 2%. One year [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":279149,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[128812],"tags":[130544,132456,130334],"actors":[],"class_list":["post-279148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-itv-news","tag-annual","tag-headline","tag-rate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Problems for Rachel Reeves ahead of November budget as food inflation ticks up | ITV News | News ISC Videos<\/title>\n<meta name=\"description\" content=\"Watch Problems for Rachel Reeves ahead of November budget as food inflation ticks up | ITV News for free, here on News ISC. 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