Inflation threatens Gwynedd food firm Welsh Lady preserves

As she waits for orders to come in, preserves maker Carol Jones is left in tears as she worries about her 20 employees who depend on her firm's survival.

Like small businesses across the UK, Welsh Lady preserves in Pwllheli, Gwynedd, has been hit by rising production costs.

"The price of butter has gone from £3 per kilo to £5.50 per kilo," she explained.

The price of staples such as bread, cereal and chocolate caused the cost of living to rise more than expected last month, according to the latest figures.

Inflation, which measures the rate of price rises, fell to 10.1% in the year to March, from 10.4% in February.

But food prices rose at 19.1%.

"It's been hard," said Ms Jones, explaining how she had to pass the increases on to her customers while trying to cut costs in other areas.