The price of our basket of dairy items has risen in price for the fourth time in five surveys, and is now 1.2% more expensive than ten weeks ago.

It was led by Cheddar and eggs and is now 10.3% more expensive than this time last year, although it is still 4.4% cheaper than two years ago.

Free-range eggs showed the biggest percentage increase - up 10% to £1.09 for a six-pack of large eggs, which are now at their highest price since the survey began in January 2005.

The latest hike follows a 5.3% price rise last October and reflects the shortage of British free-range eggs in the market. Several retailers have turned to imports, while producers complain they are not paid enough to invest in raising volume.

British Free Range Egg Producers Association vice chairman John Widdowson said: "We spent most of last year telling packers and retailers that we needed a price increase for reinvestment, and it didn't come until there was an acute shortage.

"We are pleased to see the price go up, but we will need it to keep pace with increases in costs such as feed, and we will be closely watching the position regarding cheap foreign eggs that have started appearing.

"UK packers are fast-approaching the position where they can guarantee full supply of British eggs to retailers, and when that happens we would expect foreign eggs to be de-listed."

When the price of milk was collected on Monday 5 March it had remained unchanged at all four retailers, but on Tuesday Tesco added 2p to the price of its one-pint bottles, which may lead the other three multiples to follow suit. The only other significant price change was a 1.8% rise in the price of own-label mature Cheddar.

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