Food prices showing encouraging signs of peaking

January showed food and drink price inflation drop to 16.8% in January, from 16.9% in December.

Food and Drink Federation Scotland’s Chief Executive Officer David Thomson said:

“Food and drink inflation remains worryingly high, although it's encouraging to see signs that it's starting to peak.

“Our industry can see the pressure that rising prices are putting on everyone’s weekly shop, and companies are trying their absolute best to limit price rises for shoppers. However, with food and drink companies’ average production costs rising 21% in the past year, some price rises are having to be passed on in order for our producers to survive. Evidence shows the pressure on our sector has led to double the number of food and drink companies going out of business in 2022 compared to 2019.

“The Scottish Government must use its powers to support our industry and keep costs down for Scotland’s households. This includes pausing proposals to restrict the promotions of food and drink, and working with the UK Government to ensure new regulations on plastics and packaging drive up recycling and drive down prices. In addition the government can help ensure the future success of our vital industry by investing in productivity and supporting food and drink businesses on the journey to Net Zero.”