I hope it will be as long as possible before we have another adjustment Peter Walker, Agriculture Minister

Milk distribution costs have risen steeply since April, when 43,000 delivery staff won a pay increase of 15%.

Despite widespread concern over the size of the increase, Mr Walker refused to forecast whether there would be another increase in four months' time when the next price review takes place.

"I want as few increases as possible," he said. "I hope it will be as long as possible before we have another adjustment."

The decision has brought condemnation from consumers and milk producers.

The Consumers' Association said it was "appalled" by the size of the increase, and has written to Mr Walker demanding an independent inquiry into the milk pricing system.

Dairy farmers and milk distributors are preparing for a steep drop in milk sales following the announcement.

Last year, the number of bottles of milk bought slumped by 424 million - and consumers blamed price increases for much of the drop in sales.

Milk is the latest in a long line of products to go up in price since the new Conservative government under Prime Minister Margaret Thatcher took office just three weeks ago.

Petrol is up by 6p a gallon, and bread, gas and electricity have all suffered price rises.

The government is blaming the abolition of the Price Commission, as well as the situation it inherited from the previous administration: but it is finding itself having to handle a public relations setback during the earliest stages of its first term in office.

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