UK food inflation reached an annual rate of 4.6% in February, compared to a 1.5% average in most other Eurozone countries.

This rapid inflation, the highest for 18 months, has been criticised by the investment bank UBS as a tool to increase profit margins, and could be grounds for a government enquiry.

UBS claimed that UK food price inflation is well above supermarkets' import cost inflation, and that this could be construed by politicians as unreasonable. Food inflation is also one explanation as to why overall UK inflation hit 4% recently, instead of the Bank of England's 2% target.

Now that food has become a salient political issue, with rising wheat prices helping spark off uprisings in the Middle East, food inflation in the UK should no longer go ignored, say UBS.

Retailers blame the weak pound for the inflation in import costs, and deny accusations of profiteering.