The cost of food is rising at its fastest rate for 14 years, it was revealed last week. Official figures put the increase at 6.6%, the highest since 1993. But that might be an underestimate. A recent unofficial study put the increase for household essentials at 12%.

Price comparisons from the mysupermarket.co.uk website show butter and free-range eggs are up by around a third while orange juice is up by 20%.

“Freak weather and the floods of the summer of 2007 have combined to hit crop yields,” explains a report in the Daily Mail. “Vegetables and wheat have seen particularly large increases, as have milk and other dairy products.” The higher cost of fuel also means food companies face tighter transport budgets.

The revelation from the Office for National Statistics will be a big blow to those on fixed incomes. Earlier this month it was announced that the state pension will be rising by just £3.40 a week. In an effort to combat the economic gloom, the world’s central banks have made £50 billion available to commercial banks to ease the effects of the credit crunch.

The Bank of England, the US Federal Reserve, the European Central Bank, the Bank of Canada and Swiss National Bank eased the rate at which banks borrow from each other, known as the Libor rate, from 5.10% to 4.99%.