UK Food Inflation to Hit 6.4% as Geopolitical Tensions and Weather Events Drive Up Supermarket Prices

UK food inflation is forecast to reach 6.4% by next July as rising production costs, geopolitical tensions, and extreme weather events drive up supermarket prices.

The Food and Drink Federation estimates that a £100 grocery shop in January 2020 would cost £147.50 by July 2027, an increase of almost £48.

The group has warned that manufacturers can no longer absorb the rising costs of energy, logistics, and packaging, which have increased by over 100% for some commodities such as cocoa.

Gas prices have more than doubled since February, while UK electricity prices remain among the highest in Europe. The drought across the UK and Europe has added to supply pressures, with manufacturers expected to face higher costs for fruit, vegetables, and grains.