According to grocery analysts, UK essential food prices could rise by as much as 15% in the summer as food inflation is set to reach its highest levels in more than 20 years.
In a recent report released on June 16, the Food Distribution Institute (IGD) stated that UK households are set to pay more for necessities such as dairy products, bread and meat. rice field.
As the UK economy faces the strongest inflationary pressures since the 1970s, IGD has seen food inflation higher than initially expected due to several factors, including the effects of the war in Ukraine and existing supply chain challenges. He said he expected it to last for a long time. Monetary and fiscal policies have limited effectiveness.
Analysis shows that the average monthly grocery spending for a typical family of four reached £ 439 ($ 541) in January 2023, a significant increase from £ 396 ($ 488) in January 2022.
According to IGD, products that use grains such as bread and products that contain meat from animals that eat grains such as chicken will result in higher prices from summer to autumn.
James Walton, chief economist at IGD, said the pressure on living expenses is unlikely to ease in the near future, and many households and businesses are looking to the future with “significant anxiety.”
“We have already seen households skip meals, which is a clear indicator of food stress,” he said.
“We expect shoppers to remain gloomy for the foreseeable future as they are affected by rising inflation and lower real wages. Shoppers may dial up tactics to save as much money as possible. It’s expensive, “he added.
This is because the Bank of England, the central bank of the United Kingdom, raised the benchmark interest rate by 0.25 percentage points to 1.25 percent in order to curb runaway inflation.
Last month, the Office for National Statistics (ONS) recorded inflation reaching 9%, the highest in 40 years, as food prices accelerated.
ONS revealed that between April last year and April this year, budget pasta prices rose by 50% and the cost of bread and ground beef also rose significantly.
The latest BRC-Nielsen IQ Shop Price Index, released earlier this month, shows that retail inflation reached 2.8% in May. This is the highest since July 2011, mainly due to accelerated food inflation.
Helen Dickinson, BRC Chief Executive Officer, said:
PA Media contributed to this report.