'Sobering' inflation figures impacting food and drink manufacturers

Chief executive of the Food and Drink Federation Karen Betts said:

“Today’s inflation figures are very sobering, with food and non-alcoholic drinks prices rising by 6.7%, slightly more than food manufacturers’ had feared.

“This is a very worrying time for many households, and food and drink businesses are continuing to do everything they can to contain food-price inflation. However, the pressures on both large and small businesses are immense. Ingredient price rises have been relentless for more than a year now, as a result of pressures in the global supply chain caused by the COVID-19 pandemic. The war in Ukraine, with both Ukraine and Russia important suppliers of commodities like wheat and food oils, as well as energy and fertiliser, has made the situation worse. Our sector is, in particular, impacted by the significant rises in energy costs seen this year – with over 60% of food and drink manufacturers reporting energy price rises are impacting their operations. Meanwhile, wages are rising too with labour shortages right across our sector taking hold.

“In this context, it’s vital industry and government work hand-in-hand to ensure the cost of doing business is kept as low as possible. For instance minimising the costs of existing and new regulation, and with a view to responding to shortages in supply in as agile a way as possible.”