Food prices could soar by 15% over summer with family grocery bills set to increase by £40 a month


Food prices could soar by 15% over summer with family grocery bills set to increase by £40 a month and leave more shoppers skipping meals, analysts say

  • The Institute of Grocery Distribution said families will feel inflation this summer
  • The typical family of four could see a £40-a-month rise in food bills
  • IGD blamed Brexit, labour costs and a weak pound for the inflation 

Food prices could rise by 15 per cent this summer and leave shoppers skipping meals due to ‘food stress’, according to grocery analysts.

The Institute of Grocery Distribution (IGD) said that households are set to pay more for essentials including dairy, bread and meat as high inflation bites.

A typical family of four’s shopping bills could rise as much as £40 per month in the latest pinch on domestic finances as essentials such as bread and dairy look set to rise.

The group has warned that some families may have to skip meals as inflation continues to rise. 

The Institute of Grocery Distribution (IGD) said that households are set to pay more for essentials including dairy, bread and meat as high inflation bites

The Institute of Grocery Distribution (IGD) said that households are set to pay more for essentials including dairy, bread and meat as high inflation bites

IGD said factors including uncontrolled increases in labour costs, trade disruptions caused by Brexit and the weakening of the pound is behind the rising inflation rate.

Poorest households £1,000 better off… but rich £2,000 poorer, says think tank

State benefits and pension will see their largest increase in 32 years after Rishi Sunak’s £15billion splurge, a new analysis has found.

The Chancellor unveiled a fresh cost-of-living bailout with every household getting hundreds of pounds off their sky-rocketing bills. 

According to the Resolution Foundation think tank, the poorest households will be more than £1,000 better off, but the richest households will be nearly £2,000 worse off due to Treasury changes this year.

 

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Last month, the Office for National Statistics (ONS) recorded that inflation hit a 40-year-high at 9 per cent, as food price rises gathered pace.

The report also mentioned that the UK economy is facing its ‘strongest period’ of inflationary pressure since the 1970s, with the conflict in Ukraine worsening the impact by restricting supply chains and pushing up grain prices.

This has been compounded by the fact that Ukraine and Russia are both big global grain producers, collectively accounting for nearly a third of global wheat exports.

Products that use grain such as bread and products containing meat from animals fed on grain, for example chicken, are to increase in price over summer and autumn as a result, said the IGD.

James Walton, the chief economist at IGD, said: ‘From our research, we are unlikely to see the cost of living pressures easing soon.

‘This will undoubtedly leave many households, and the businesses serving them, looking to the future with considerable anxiety.

‘We are already seeing households skipping meals, a clear indictor of food stress.

‘We expect the mood of shoppers to remain bleak for the foreseeable future as they are impacted by rising inflation and a decline in real wages.

Industry experts warned the situation will get 'worse before it gets better' as the latest BRC-NielsenIQ Shop Price Index shows retail price inflation were 2.8% in May, the highest figure since July 2011 (stock image)

Industry experts warned the situation will get ‘worse before it gets better’ as the latest BRC-NielsenIQ Shop Price Index shows retail price inflation were 2.8% in May, the highest figure since July 2011 (stock image)

The Office for National Statistics scraped supermarket data from the web to capture the price changes of everyday grocery items over a year

The Office for National Statistics scraped supermarket data from the web to capture the price changes of everyday grocery items over a year

Even the CHEAPEST pasta rockets 50%

The cost of pasta rose 50 per cent over the past year while the price of crisps, bread, beef mince and rice also soared as Britons suffer a cost-of-living crisis, new research has shown.

An Office for National Statistics study – based on the price of lowest-cost products – revealed how a 500g pack of beef mince now costs 32p more than it did 12 months ago, while a 500g pack of pasta is now 17p more expensive.

Figures demonstrate how families are having to deal with rising grocery costs – for even the cheapest-priced goods – at a time when other household bills, especially gas and electricity, are also rocketing.

However, in better news for supermarket shoppers, the study revealed the price of some everyday groceries actually fell between April 2021 and April this year.

The cost of cheapest-priced potatoes fell 14 per cent, with the price of cheese (down seven per cent), pizza (four per cent), chips (three per cent), sausages (three per cent) and apples (one per cent) also all cheaper than they were last year. 

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‘Shoppers are likely to dial up money-saving tactics as far as possible.’

The report comes after shoppers in Britain were hit by the highest prices in more than a decade last month as rapidly accelerating inflation continues to hit weekly bills, according to new figures.

Industry experts warned the situation will get ‘worse before it gets better’ as the latest BRC-NielsenIQ Shop Price Index shows retail price inflation was 2.8% in May, the highest figure since July 2011.

The trade association the British Retail Consortium and data company Nielsen track how the average food price is changing by assessing price changes for 500 commonly bought items.

It said this accelerated from a 2.7 per cent rise in April as rapidly rising food prices offset discounting and promotions in clothing and homeware. 

This is mainly down to food inflation which leaped to 4.3 per cent in May from 3.5 per cent in April, reaching the highest since April 2012. 

And fresh food prices grew by 4.5 per cent while ambient food, such as store-cupboard staples, rose by 4 per cent for May up from 3.5 per cent in April. 

Meanwhile, the new data showed that non-food prices saw a slowdown in inflation to 2 per cent in May from 2.2 per cent in April. 

The BRC said the bad news is due to ‘soaring costs of animal feed’ and global food prices that have hit the UK hard. 

The Office for National Statistics (ONS) has revealed that budget pasta prices rose 50 per cent in a year to April with the cost of bread and minced beef also substantially higher.

How have the cost of goods risen at YOUR supermarket? Shopping data reveals average price of items at Iceland has shot up 11% in a year, Aldi by 9.6% and Sainsbury’s by 1.1%

By James Robinson for MailOnline 

Britons looking to cut back on their food bills amid the cost of living crisis are being hit with bigger price rises in discount chains than in their supermarket rivals, according to new data.

Figures show how Aldi and Iceland have upped the cost of an average item in their shops by more than Tesco, Sainsbury’s, Asda and Morrisons in the last 12 months. 

An average item now costs 31p more than it did 12 months ago in Iceland – a rise of 11 per cent – while Aldi prices have risen by 19p on average – a rise of 9.6 per cent.

The figures, from Trolley.co.uk’s Grocery Price Index, also show how three of the ‘Big Four’ supermarkets, Asda, Tesco and Morrisons, have kept average price rises down to around 3 per cent.

Sainsbury’s saw the smallest increase in the average cost of an item of the major supermarkets, with prices rising by 4p –  a rise of 1.1 per cent – while Co-Op saw the smallest increase of 0.3 per cent.

Waitrose saw one of the largest monetary increases, with an average 22p rise per item over the last 12 months. However this represented a 4.4 per cent rise, due to Waitrose having a slightly higher price per item to begin with.

It comes as separate analysis by MailOnline shows how the average cost of a 20 item shopping basket is now £3 more than it was in May last year.

Perhaps even more worryingly, is that it is key staples including milk, butter and spaghetti that have seen some the biggest rises – with the popular pasta seeing an average 17 per cent rise in cost in the last 12 months.

Meanwhile, Tesco now has the most expensive 20 item basket of the UK’s big four supermarkets, coming in at £66.24 – up from £62.67 in May last year.

It comes as it was revealed how inflation – a measure of price changes over time – had soared to a 40-year high yesterday.

The headline CPI rate – a measure of all consumer goods and services purchased by households – rose to 9 per cent in April – up from 7 per cent in March. It is now the highest level since 1982.

And the Bank of England expects the rate will get even worse, peaking at 10.25 per cent during the final quarter of the year amid biggest squeeze on incomes since records began in the 1950s. That would be more than five times its 2 per cent target.

Earlier this week the bank’s chief issued an ‘apocalyptic’ warning about soaring food prices and said he felt ‘helpless’ in the fight against inflation as he told MPs the Ukraine war could yet deepen the cost-of-living crisis.

Governor Andrew Bailey revealed how further food inflation was a ‘major worry’ for the central bank, with particular concerns about wheat and cooking oil.

He also warned that a ‘very real income shock’ is coming this year as prices spiral at the fastest rate in 30 years and make millions of people poorer in real terms – and that surging inflation would hit household spending, causing unemployment to rise.

Tory ministers are now exploring a triple tax cut to ease the cost of living crisis, including helping homeowners with rising energy prices.

One of the main drivers of inflation, which is being seen in many parts of the world, including the EU and the US, has been spiraling natural gas and crude oil prices. 

A sudden flux in world demand following the lifting of Covid restrictions in many countries has outstripped supply, causing a price rush across much of the world.

And Russia’s invasion of Ukraine has further compounded issues, because both Russia and Ukraine are larger supplier of grain and sunflower seeds to much of Europe – and supplies are being heavily disrupted.

Supermarket industry chiefs today told MailOnline that firms are ‘doing their bit’ to keep prices low but are facing rising costs, particularly in food production.

Britons looking to cut back on their food bills amid the cost of living crisis are being hit with bigger price rises in discount chains than in their supermarket rivals, according to new data

Britons looking to cut back on their food bills amid the cost of living crisis are being hit with bigger price rises in discount chains than in their supermarket rivals, according to new data

Analysis of Trolley.co.uk data by MailOnline shows how the average cost of a 20 item shopping basket across all supermarkets is now £3 more expensive than it was in May last year - a rise of 6.45 per cent. Pictured: A graphic showing how individual items in the 20 item basket have increased. The costs are based on average costs of an item across a number of supermarkets and include larger packs and more expensive brands - bringing up the average cost. Pictures are for illustrative purposes and not the actual cost of those items

Analysis of Trolley.co.uk data by MailOnline shows how the average cost of a 20 item shopping basket across all supermarkets is now £3 more expensive than it was in May last year – a rise of 6.45 per cent. Pictured: A graphic showing how individual items in the 20 item basket have increased. The costs are based on average costs of an item across a number of supermarkets and include larger packs and more expensive brands – bringing up the average cost. Pictures are for illustrative purposes and not the actual cost of those items

Pictured: A graphic showing the average cost of a 20 item basket has increased in the last 12 months at each supermarket, according to analysis of data from Trolley.co.uk's Grocery Price Index. The 20 items, selected by MailOnline, include essentials such as bread, milk and eggs, as well as washing powder, toothpaste, and commonly bought luxuries such as beer and wine

Pictured: A graphic showing the average cost of a 20 item basket has increased in the last 12 months at each supermarket, according to analysis of data from Trolley.co.uk’s Grocery Price Index. The 20 items, selected by MailOnline, include essentials such as bread, milk and eggs, as well as washing powder, toothpaste, and commonly bought luxuries such as beer and wine

It comes as figures from price tracking website Trolley.co.uk show how the largest average price rises across the UK’s major supermarkets have come at Iceland and Aldi.

How the average cost of a 20 item supermarket basket has increased in the past 12 months 

ASDA

Price in May 2021: £56.99

Price in May 2022: £60.53

Increase: £3.54 – Percentage increase: 6.2%

Tesco

Price in May 2021: £62.67

Price in May 2022: £66.24

Increase: £3.57 – Percentage increase: 5.7%

Sainsbury’s

Price in May 2021: £62.94

Price in May 2022: £64.69

Increase: £1.21 – Percentage increase 2.8%

Morrisons: Price in May 2021: £59.14

Price in May 2022: £62.10

Increase: £2.96 – Percentage increase: 5%

Co-Op: Price in May 2021: £62.34

Price in May 2022: £62.36

Increase: £0.02 – Percentage increase: >0.01%

*Figures are based on Trolley.co.uk’s Grocery Price Index data for the last 12 months and include 20 items selected by MailOnline, including bread, butter, eggs and milk – among other products. Aldi, Iceland and Waitrose could not be included in this analysis as a full list of products was not available at the time of publication. Lidl data is not available on Trolley.co.uk.

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The website’s analysis of prices from more than 650 products sold at Iceland from May 2021 to May 2022 show how the average cost of an item is now £2.98 – up from £2.67 last year.

The 31p increase is an 11 per cent rise – above current inflation rates.

Trolley.co.uk also analysed 2,204 products sold at German discount chain Aldi and found the average cost of an item had gone up from £1.97 to £2.16. The 19p rise is equal to a 9.6 per cent increase.

Asda (11p per item), Tesco (10p per item) and Morrisons (12p per item), which had more than 12,000 products analysed, all saw similar average price rises of around 3 per cent, according to the website.

Waitrose saw an average of 22p added to each item over the last 12 month, according to Trolley.co.uk, but as items were already more expensive in general this equaled a 4.7 per cent increase.

The smallest increases were at Co-Op and Sainsbury’s, according to the data. Lidl data is not available on Trolley.co.uk’s index.

The average cost of an item at Co-Op rose 1p from £3.30 to £3.31 in the last 12 months, while Sainsbury’s saw a 4p increase, from £3.74 to £3.78.

The data by Trolley.co.uk is an average cost of an item in a supermarket. Larger supermarkets such as Tesco, Sainsbury’s, Asda and Morrisons have significantly more product lines than the likes of Aldi and Iceland – including more expensive items which are likely to increase the overall average. 

It comes as analysis of Trolley.co.uk data by MailOnline shows how the average cost of a 20 item shopping basket across all supermarkets is now £3 more expensive than it was in May last year – a rise of 6.45 per cent.

The 20 items, selected by MailOnline, include essentials such as bread, milk and eggs, as well as washing powder, toothpaste, and commonly bought luxuries such as beer and wine.

Shoppers at Tesco have seen the biggest increase, with a basket now costing £3.57 more than it did 12 months ago.

The 5.7 per cent rise, which is below inflation, means a 20 item basket now costs £66.24, up from £62.67 in May last year.

Asda saw a bigger percentage rise, of 6.2 per cent, with a basket going up £3.54 from £56.99 to £60.53 in the last 12 months.

Morrisons saw the next biggest percentage rise, of 5 per cent, with the cost of a basket rising from £59.14 to £62.10 – an increase of £2.96. 

Sainsbury’s saw the smallest rise of the big four, with the cost of a basket rising 2.8 per cent, with the total increasing from £62.94 to £64.69 – a rise of £1.21.

How the average price of a 20 item basket of shopping has risen in the last 12 months 

Milk: May 2021: £1.29 – May 2022: £1.47 – Increase: £0.18 – Percentage increase: 14%

Eggs: May 2021: £1.89 – May 2022: £2.04 – Increase: £0.15 – Percentage increase: 7.9%

Bread: May 2021: £1.10 – May 2022: £1.19 – Increase: £0.09 – Percentage increase: 8.2%

Toilet Roll: May 2021: £4.11 – May 2022: £4.57 – Increase: £0.46 – Percentage increase: 11.2%

Washing powder: May 2021: £5.84 – May 2022: £5.96 – Increase: £0.12 – Percentage increase: 2.1%

Fruit: May 2021: £1.70 – May 2022: £1.79 – Increase: £0.09 – Percentage increase: 5.3%

Toothpaste: May 2021: £3.02 – May 2022: £3.16 – Increase: £0.14 – Percentage increase: 4.6%

Cheese: May 2021: £2.41 – May 2022: £2.56 – Increase: £0.15 – Percentage increase: 6.2%

Bag of potatoes: May 2021: £1.36 – May 2022: £1.44 – Increase: £0.08 – Percentage increase: 5.9%

Beer: May 2021: May 2021: £6.71 – May 20221: £6.91 – Increase: £0.20 – Percentage increase: 3%

Shampoo: May 2021: £3.59 – May 2022: £3.62 – Increase: £0.03 – Percentage increase: 0.8%

Spaghetti: May 2021: £1.00 – May 2022: £1.16 – Increase: £0.16 – Percentage increase: 16%

Spreadable Butter: May 2021: £3.05 – May 2022: £3.43 – Increase: £0.38 – Percentage increase: 12.5%

Baked Beans: May 2021: £1.27 – May 2022: £1.39 – Increase: £0.12 – Percentage increase: 9.4%

Chicken Breast: May 2021: £4.03 – May 2022: £4.17 – Increase: £0.14 – Percentage increase: 3.5% 

Tea Bags: May 2021: £2.97 – May 2022: £3.01 – Increase: £0.04 – Percentage increase: 1.3%

Ham: May 2021: £1.78 – May 2022: £1.89 – Increase: £0.11 – Percentage increase: 6.2%

Crisps: May 2021: £1.91 – May 2022: £2.00 – Increase: £0.09 – Percentage increase: 4.7%

Coffee: May 2021: £3.55 – May 2022: £3.72 – Increase: £0.17 – Percentage increase: 4.8%

White wine: May 2021: £7.10 – May 2022: £7.20 – Increase: £0.10 – Percentage increase: 1.4%

TOTAL: May 2021: £59.68 – May 2022: £62.68 – Increase: £3.00 – Percentage increase: 6.45%

*Figures based upon data from Trolley.co.uk 

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Co-Op saw the smallest increase, of just 2p in the last 12 months – a rise of less than 0.01 per cent. However the cost of a basket was still the third most expensive, behind Tesco and Sainsbury’s at £62.36.

Iceland, Aldi and Waitrose could not be included in the analysis because there was not a full set of data on each of the 20 items included in the basket.

Meanwhile, other analysis of Trolley.co.uk’s data shows how prices have risen on individual products in the 20 item basket.

Concerningly, the biggest cost rises, in terms of the average percentage increase across all supermarkets, have been in some of the most common essential items.

Spaghetti, a staple in most kitchen cupboards, saw a 16 per cent increase, going up on average from £1 to £1.16 in the last 12 months.

Spreadable butter was also one of the bigger risers, going up 38p from £3.05 to £3.43 on average since May last year – a rise of 12.5 per cent.

Other big risers include milk. On average a price of milk now costs £1.47, up from £1.29 in May last year – a rise of 14 per cent. The average including small and larger sizes, including 3 Pint cartons, as well as more expensive brands.

Toilet rolls are now 46p more expensive on average than they were last year – a rise of 11.2 per cent – while bread now costs on average £1.19, 9p more than it did in May 2021, according to the figures.

Cheese, potatoes, ham and bags of fruit are also, on average, around 6 per cent more expensive than last year, while cans of baked beans have risen by around 12p.

Surprisingly, some of the smallest increases have been in wine and beer. The average bottle of white wine now costs £7.20 in UK supermarkets, up 10p (1.4 per cent) from last year, while packs of beer on average cost £6.91, up 20p (3 per cent) from May 2021. The average for beer includes four packs and much larger packs, including crates of 20. 

Commenting on the figures, Saeed Ibrahim, from Trolley.co.uk, said: ‘Looking at the last few months, it’s clear prices are continuously increasing across these staples (with some of the sharpest rises occurring over the last couple of months). 

‘Unfortunately, this could very well mean that this trend will continue into the future. 

‘I fear for how devastating the effects of this could be on those of us who are already in need of financial support.

‘I would suggest that shoppers begin looking at where their weekly shop has increased the most in price and consider switching to cheaper or own brand alternatives where possible.’

Meanwhile, the British Retail Consortium, a group which represents the interests of retail firms, including supermarkets, said retailers were ‘doing their bit’ to keep prices low but were facing rising costs, particularly in food production.

Helen Dickinson, Chief Executive of the British Retail Consortium, said: ‘Inflationary pressures continue to impact businesses as well as households, with soaring energy prices further driving up the Consumer Price Index.

‘These higher energy prices, along with a tight labour market, and the huge costs of moving goods around, are impacting all retailers.

‘Food production has been particularly hard hit, with historically high global food prices, rising costs of animal feed, and disruption in supplies as a result of the Ukraine war.

Cheese, potatoes, ham and bags of fruit are also, on average, around 6 per cent more expensive than last year, while can of baked beans have risen by around 12p. Pictured: A library image of a person carrying a shopping basket in Tesco

Cheese, potatoes, ham and bags of fruit are also, on average, around 6 per cent more expensive than last year, while can of baked beans have risen by around 12p. Pictured: A library image of a person carrying a shopping basket in Tesco

‘The Bank of England now expects inflation to top 10% by the end of the year, as many of the rising costs filter down into prices.

So what IS driving the UK’s spiralling inflation? 

Prices are rising by 7 per cent a year in the UK – the highest rate for 30 years and The Bank of England has warned inflation might reach 10 per cent within months. 

By far the biggest contributor has been the huge spike in wholesale crude oil and natural gas prices.

Demand, sparked by the economic recovery following COVID-19 shutdowns, has outstripped supply, driving up prices.

And Russia’s invasion of Ukraine has only exacerbated the problems. Russia is Europe’s largest supplier of gas and earlier this year Vladimir Putin, in response to sanctions over his invasion of Ukraine, demanded some European countries pay for Russian gas in roubles.   

A direct consequence of spiraling fuel prices is an increase in petrol prices, with average petrol prices rising by 12.6p per litre between February and March – the largest monthly rise since records began in 1990.

But it has also led to an increase in transport costs for food firms and supermarkets, driving up costs there as well. Ukraine is also a producer of a large amount of food, including wheat and sunflower seeds. Disrupted supplies have again raised prices.

On top of that, a spike in the cost of natural gas has seen energy prices rise for homes and businesses. Earlier this year Ofgem increased the price cap for the average costs of almost £700-a-year – and it could rise even more in October when the cap is reviewed again.

VAT has also gone up for some businesses. The government reduced VAT for hospitality and tourism firms during the pandemic, but on April 1 it returned to the standard 20 per cent rate.

Britain isn’t alone however in its battle with inflation. Brexit has had an impact, particularly in terms of staffing, leading companies to increase wages – and ultimately costs – to compete for a smaller pool of workers.

But UK inflation has been broadly in line with the EU average for the last year. And while figures from the ONS last month put the UK above France and Germany in terms of inflation, the UK remained in line with the EU average.

Meanwhile, inflation in the US in December, the last figure reported by the ONS, was at 8.1 per cent, higher than the 5.4 per cent UK inflation at the time.

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‘Retailers are doing their bit to protect consumers by expanding their value ranges and doing all they can to keep the price of essentials down. 

‘This can be seen in the BRC’s Shop Price Index, which tracks the price of basic goods, which showed a slower rise in the price of essential foods and other products than the inflation levels seen in the broader CPI measure.’

It comes as separate data released by The Office for National Statistics (ONS) showed how the prices of butter, sugar and milk have surged by 11.8 per cent, 12.2 per cent and 13.2 per cent respectively.

The ONS revealed that inflation hit 9 per cent in the year to April yesterday, measured by the Consumer Prices Index (CPI).

This is thought to be the highest figure for 40 years.

Most of the rise was due to the 54 per cent hike in the energy price cap, but prices on all but two of the more than 80 items that the ONS tracks have risen over the past year.  

According to Retail Price Index figures – which are slightly different to the CPI – potatoes were one of the very few household grocery staples to drop in price over the year to April – down 1.2 per cent. 

But overall food prices rose 6.8 per cent, with meats, oils and some animal products especially hit.

The rise across meat categories was clear: lamb was the worst hit, up 14.2 per cent, followed by poultry (10.4) and beef (9.8) while pork got off with a lighter 4.9 rise.

Butter prices rose 11.8 per cent and the price of oils and other fats soared 18.2 per cent over the last year after fears of a shortage sparked by the war in Ukraine – which is a major producer of sunflower oil. 

Away from food, households were also hit by an 8.1 per cent extra price on their restaurant bills, while the price of takeaways and snacks rose 6.5 per cent.

Premier Foods – which also owns brands such as Oxo cubes, Sharwoods and Ambrosia – today said the Ukraine war was pushing up prices of many of its ingredients, including wheat and dairy, while fuel and energy costs are also rocketing.

Its boss Alex Whitehouse said the group raised prices after seeing a ‘high single digits’ increase in costs in its year to April and is expecting to ramp them up again as it braces for a further ‘low double-digit’ rise in costs over the year ahead. 

He said the rises would be spread across its brands, though it is also launching cost efficiency programmes to try and tackle surging inflation. 

Mr Whitehouse said: ‘Food inflation is pretty significant and for some families that’s going to be really tough.’

He pledged the group would ‘work really hard to offset as much of the inflation pressures as we can and help people as best we can by trying to keep prices down’.   

Newly-modelled figures from the ONS show that CPI would have last been above the April 2022 level of 9 per cent in March 1982 - when it was 9.1 per cent

Newly-modelled figures from the ONS show that CPI would have last been above the April 2022 level of 9 per cent in March 1982 – when it was 9.1 per cent

Sharp increases in energy and other household bills have been driving the recent spike in inflation

Sharp increases in energy and other household bills have been driving the recent spike in inflation 

Cost of grocery staples: Oil surges by 18% after Ukraine war with only potatoes now cheaper  

Bread 6.2%

Cereals 5.0%

Biscuits and cakes 11.0%

Beef 9.8%

Lamb 14.2%

Pork 4.9%

Bacon 1.8%

Poultry 10.4%

Other meat 7.1%

Fish 7.6%

Butter 11.8%

Oil and fats 18.2%

Cheese 5.6%

Eggs 6.1%

Fresh milk 13.2%

Tea 3.8%

Coffee 8.8%

Soft drinks 6.5%

Sugar 12.2%

Sweets & chocolates 0.7%

Potatoes -1.2%

Fresh vegetables 2.6%

Fresh fruit 4.7%

Other foods 8.1%

UK Retail Prices Index, as of April 2022, over past year

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Details of the price hike plans follow results showing the group’s pre-tax profits jumped 16.4 per cent to a higher than expected £102.6 million in the year to April 2.

Premier Foods said its Mr Kipling cake brand enjoyed its best year ever in 2021, helping the overall sweet treats category enjoy a 7 per cent rise in revenues.

The firm announced a 20 per cent rise in its shareholder dividend payout on the back of the bumper results, helping shares rise 6 per cent in morning trading today.

Bank of England Governor Andrew Bailey warned earlier this week that ‘apocalyptic’ food prices could be disastrous for the world’s poor.

Energy prices are also feeding into the rising food costs – farmers and food factories need gas, petrol and electricity to run their businesses and have to pass these costs onto customers.

This is also the case for many other products.

Drinking at a pub got more expensive too, with the cost of beer up 4.9 per cent and wine rising 6.2 per cent. Alcohol prices increased less rapidly in off licences and supermarkets.

Food and Drink Federation chief executive Karen Betts said that the figures are slightly worse 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,’ she said.

‘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.’        

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