The latest price survey by the British Retail Consortium/Nielsen finds that food inflation increased to 4.4 per cent in October from 4 per cent in September.

Stephen Robertson, British Retail Consortium Director General, said: "Wheat is up 47 per cent compared with a year ago, affecting the price of staples such as bread - and some meat products, as feed costs work their way up the supply chain."

Cotton has also risen 90 per cent over the last 12 months, however, inflation in the non-food sector continues to be low.

Mike Watkins, Senior Manager, Retailer Services, Nielsen comments: "We are seeing the impact of the cost price increases that have been filtering though for a number of months, reflected in increased shop prices during October. So, it is of no surprise that both non-food and food retailers have reacted by maintaining or increasing the level and depth of promotions to help drive headline sales. And, with volume growths in food retailing slowing in recent weeks, shoppers can probably look forward to even more promotions and offers this Christmas."