Food and drink inflation nears record level
14 September 2022
August’s food and drink prices rose at an annual pace of 13.1%, just shy of 13.2%, the highest rate since 1989 when figures started being measured using current methodology.
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The FDF’s Chief Executive Karen Betts said:
“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.
“Ministers can also help our sector by addressing burdensome taxes and unsuitable regulations, as they have committed to do. A clear focus on ensuring our sector is well-placed to grow out of this crisis is critical – swift measures to simplify regulation, reduce red tape, and boost productivity will be decisive, alongside support with energy costs.”