The price of an Ulster fry has soared by nearly one fifth in the last year on the back of widespread food inflation, according to Ulster Bank.
Its widely watched Ulster Bank Fry Index counts the cost of all the main ingredients in the iconic breakfast and reported the largest increase since its records began in 2007. Sharp jumps in the price of milk, (up 43%), margarine (up 32%), eggs (up 29%), butter (up 25%) and sliced loaf (up 21%) were behind the bulk of the increase, although all constituent parts of the fry pushed higher.
The index is used as a barometer of local inflationary pressures in the agri-food industry and reflects the steady increases in a basket of food which consumers have been faced with for a number of months.
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Richard Ramsey, Chief Economist at Ulster Bank, said there is hope on the horizon, however.
“What the Ulster Fry Index is telling us is that the price of everyday household essentials such as bread and milk have risen beyond their previous peaks, and this coupled with rising energy bills is continuing to put a squeeze on consumer spending powers,” he said. “While it may not deliver good news initially, the reality is however, that we can expect these rises to begin to level off and we may even see some decreases in the next 12 months.
“That said, this will bring little comfort to those households who are struggling to contend with double-digit inflation and ongoing cost pressures on what have previously been considered every day or basic household items.”
The Ulster Fry Index was revealed at the launch of Ulster Bank’s sponsorship of the Balmoral Show.
Cormac McKervey, Senior Agriculture Manager at Ulster Bank, said farmers too have faced challenges with input inflation.
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“Undoubtedly, farmers in Northern Ireland are going through a challenging period and facing undue pressure to produce affordable food against a backdrop of labour challenges and rising input costs,” he said. “But, compared with where we were 12 months ago, there are a few glints of optimism.
“Since the beginning of this year, we have seen increased activity across land, poultry, and dairy. Fertilizer prices are falling, and feed costs are also showing signs of decreasing which should alleviate some of the more upfront cost pressures.”