Food prices in the UK have continued to rise, with a 4.9% increase over the past year, according to latest inflation data. This rise is attributed to various factors including climate change, global events such as the war in Ukraine, and rising costs for businesses.
Climate-related droughts in the UK and extreme weather conditions in other countries have led to lower crop yields, driving up prices of essential food items. The situation has become more severe over the past five years, with a 37% increase in food prices.
Business owners are feeling the squeeze as rising minimum wages, National Insurance Contributions, and increased energy costs force them to pass on these expenses to consumers. Jane Matthews, operations director of the Ice Cream Farm, says her business is “being squeezed on all corners.”
Research suggests that many people are cutting back on fast food and casual dining, opting for smaller treats like coffee or chocolate instead. Lalitha Try, an economist at the Resolution Foundation, notes that low-income families are particularly affected by rising food prices, as they spend a larger proportion of their income on essential items.
The Bank of England predicts that food price inflation will peak at around 5.5% this year before falling to between 2% and 3% in 2026. As the autumn Budget approaches, policymakers will be closely monitoring inflation rates and interest rate decisions.
Source: https://www.bbc.com/news/articles/cyvn9z3y78lo