Food and Drink Federation expresses concerns over near-record retail inflation
The UK’s Food and Drink Federation has expressed concern at significant sustained ongoing rates of inflation which last month saw price increasing soaring to near-record levels 13.1%, reports Neill Barston.
As the organisation noted, this was just short of the steepest level of inflation, 13.2% which occurred in 1989, when present measuring methodologies were adopted.
Clearly, the confectionery sector has been impacted too, with some of the nation’s most renowned brands seeing their shelf prices rise notably, against a backdrop of ingredients supply shortages worsened by the war in UKraine, an increase in logistics costs, and wider economic turbulence, all playing their part in a concerning picture.
“Food and drink inflation has continued to rise, today reaching 13.1% – the second highest figure on record. This reflects the relentless rise in ingredient, energy and input costs food and drink manufacturers have been grappling with over the last two years, and which have accelerated dramatically in recent months. It’s worrying for households because the cost of everyone’s shopping is continuing to rise, and for businesses which are struggling to make ends meet amid exponential rises in their costs.
“The support the Prime Minister announced to help households and businesses deal with soaring energy bills is very welcome. However, our sector urgently needs a more detailed conversation with the UK government on the scope of the business energy support scheme. The resilience of the food and drink supply chain has been eroded by successive crises, and real fragilities are now being exposed by soaring inflation.
As the FDF added, the government could also add further assistance by addressing ‘burdensome taxes and what it described as unsuitable regulations.
The organisation believed it was vital to enact swift measures to reduced business red tape to see a renewed productivity boost, as well as support being required in tackling the energy crisis.