Food Prices Expected to Continue to Rise – Industry Experts Warn

By: Gáspár Kinga Date: 2022. 07. 04. 09:00

As the UK battles with the cost-of-living crisis, industry experts expect food prices to continue to rise, hitting its peak in 2023.

Food prices are expected to rise into next year

According to research by the Institute of Grocery Distribution (IGD), food inflation in the UK is likely to peak at 15% this summer and remain at high levels into next year.

The UK has seen its highest fresh food inflation rate in 13 years, currently standing at 5.6% in June, as revealed in the BRC-NielsenIQ Shop Price Index data. As a result, over half (56%) of 4,011 UK adults have reduced the amount of food they’ve bought, while 42% have shopped at a different place to usual to decrease their shopping bills, according to a survey by the BBC.

Following the Covid-19 pandemic and Russia’s invasion of Ukraine, costs have risen for many food and drink manufacturers due to continued shortages of supply and labour. The Ukraine, who is the sixth-largest exporter of wheat globally, only had the potential to produce around 21 million tonnes of wheat this year, 23% less than the previous five years.

The Food and Drink Federation, a membership organisation that represents and advises UK food and drink manufacturers’ boss, Karen Betts told the BBC: “The manufacturers that I speak to are saying that at the moment all their input costs are rising, so that’s everything from ingredients to raw materials, energy, labour and they can’t see an end to that.”

Grocery Gazette