Food prices and sales 'on the up'

Both the price of food and the amount sold appear to have risen over recent months, according to official statistics.

Food prices rose by 6% last month, figures from the Office for National Statistics (ONS) have suggested. It is the biggest jump in prices since March 1992.

ONS figures also suggest that the amount of food sold rose 0.3% between June and July. And that the volume of non-food sales increased by 0.3%.

However, Stephen Robertson, director general of the British Retail Consortium said the report "doesn't seem to reflect the current retail reality".

"Few retailers will recognise this positive picture," he said. "There is no evidence that fundamental conditions are improving for customers or retail businesses."

"Consumer confidence remains low, unemployment is rising and the housing market weakening. It's hard to see what could produce the sales-growth boost ONS are reporting."