The latest figures show the cost of food in Britain is rising at 15.5 percent a year.
Families will have to find more than £100 a month extra this year to cope with increases in the cost of food, heat, light and transport.
According to the government-preferred measure of inflation, the Consumer Price Index, inflation is running at only 2.5 percent.
But the reality is that many families need to find more than £1,200 extra a year just to stand still.
Once higher mortgage costs are added, millions are having to pay out at least another £2,000 a year to keep their heads above water.
A household spending £100 a week on food in 2007 will now have to find another £66 a month or £800 a year.
Unleaded petrol is up by 16.5 percent while diesel has soared by 23.3 percent in a year – putting up the annual cost of motoring by an average of more than £200.
Gas and electricity are up by more than 12 percent, adding an average of £100 a year to household bills.
A pack of butter is up by 36p to 94p – or 62 percent. A dozen free-range eggs are up 70p to £2.45 – or 40 percent and a pack of frozen peas from 46p to £1.52 – or 43 percent.