A focus on forecourt fuel prices is distracting people from the wider effects of oil inflation on the cost of food.

That is the view of Richard Liddiard, head of rural agency for property consultancy Carter Jonas. He said until the effect of oil on food prices is contained the inflationary spiral will continue.

He said while oil prices had dropped in dollars, Sterling had dropped in its value against the dollar to leave oil still expensive.

“People are missing how oil prices are going to sting us in the long term because it is affecting food price inflation in more ways than just the price of diesel for delivery,” he said.

“Oil is used for fertilisers and sprays, to power the machines that apply them and harvest the crops. This affects the price of grain and, where it is used to feed livestock, the price of the eggs, milk, or meat that the livestock produces.

“Cereals have been leading the price charge since 2008, although less than when it peaked that year. There is some evidence that cereals have become a safe haven crop because as a commodity it is backed by the growing demand that has come through a rising world population and a westernising of the diet in the Far East.

“The rise in production costs is largely oil driven but there’s also a feeling that while the gravy train has been in the station the merchants have been jumping on board.”