Wet lettuce helps drive annual food price inflation to 7.6%

Wet lettuce helps drive annual food price inflation to 7.6% August 25th, 2008 Lettuce prices rose 32.4% in July and were a significant factor in driving 0.6% food price inflation for the month, with annual food price inflation at 7.6% in the year to July. The annual inflation rate is down from 8.2% in June, but remains uncomfortably high due to significant increases in dairy, bread and other grocery items affected by higher global food prices rather than than seasonal factors. It keeps the pressure on the Reserve Bank to be cautious in its programme of cuts in the Official Cash Rate later this year.