UK Food Prices Set to Rise as Conflict and Climate Change Bite

Food prices are expected to rise by almost 4% by Christmas and reach 6.4% in July next year, according to the Food and Drink Federation (FDF). This is due to pressures from conflict and extreme weather events affecting supermarket shelves.

The FDF predicted a lower figure than its previous estimate of 9% for the end of the year, but warns that inflation will remain significantly above historical averages in the second half of next year.

Gas prices have more than doubled since February, while UK electricity prices are some of the highest in Europe, and UK diesel prices have risen by 28.6% since the start of the conflict in the Middle East.

The FDF's latest Food Inflation Forecast shows that climate-related events have compounded problems, with the cost of wheat up 45%, cocoa more than 100%, rice up 60%, sugar and coffee up 27% and 22% respectively.

FDF chief executive Karen Betts said: 'Food and drink manufacturers have kept food prices as low as possible during the energy shock since the closure of the Strait of Hormuz but they can't do this indefinitely.'