Food inflation in the UK will hit 15% this summer, says IGD

Food inflation in the UK will hit 15% this summer, says IGD

Food price inflation in the United Kingdom is expected to reach 15% this summer, with high levels expected to last until 2023, according to industry researchers at the Institute of Grocery Distribution (IGD).

According to its most recent assessment, the rise in food and drink costs would strike Britain’s most disadvantaged families the hardest.

In January 2023, IGD anticipated that the average monthly grocery bill for a typical household of four would be 439 pounds ($528), up from 396 pounds in January 2022.

It anticipates meat, grain items, dairy, fruit, and vegetable prices to be the most affected by inflation.

It predicted that items that depend on wheat for feed, such as white meats, will face price increases shortly.

High levels of food inflation, according to the researcher, will likely last until mid-2023, owing to several factors, including the impact of the Ukraine conflict, pre-existing supply chain challenges, the limited effectiveness of the monetary and fiscal policy, and the effects of Brexit still being felt.

“Based on our analysis, we don’t expect cost-of-living pressures to ease anytime soon,” IGD chief economist James Walton said. “We’re already seeing families miss meals, which is an obvious sign of food stress.”

In April, the official inflation rate in the United Kingdom reached a 40-year high of 9%. It is expected to exceed 10% in 2022 when regulated energy bills rise by another 40%.