Food inflation has climbed to its highest level in nearly a year as farmers grapple with escalating costs following tax increases and severe weather conditions.
Whilst overall inflation exceeded forecasts in June at 3.6 per cent, food and beverage inflation continued to surpass the broader economy at 4.5 per cent.
This marked the third successive monthly rise in the rate, representing the highest figure recorded since February 2024.
Butter, chocolate and red meat have experienced the steepest price increases over the past year – with butter costs soaring by nearly 20%, as reported by .
"The pressure on food and drink manufacturers continues to build... rising costs are gradually making their way into the prices shoppers pay at the tills," sustainability director at The Food and Drink Federation (FDF), Balwinder Dhoot, said.
These pressures include higher wage costs due to tax hikes in April, plus low yields due to extreme weather and a crucial shortage of carbon dioxide used in farming.
"Despite fierce competition between retailers, the ongoing impact of the last budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising," Kris Hamer, insight director at the British Retail Consortium, said.
Britain's level of self-sufficiency - the amount of food we consume that is grown in this country - fell from a peak of 78% back in 1984 to 62% in 2023. In May, a campaign group called Save British Farming assembled outside Westminster to caution that "Ration books are coming".
Asda faced criticism in March for stocking German chicken breasts, which the retailer described as a temporary solution to address supply shortfalls, whilst Marks and Spencer's has been retailing Egyptian potatoes and Tesco has been offering spring onions from Senegal.
The sectors upon which the º£½ÇÊÓƵ has historically depended – livestock and arable farming – are experiencing considerable strain: Beef prices surged by a fifth in June, as did butter costs, whilst lamb prices climbed 10%.
Both beef and lamb production have been struggling with declining cattle numbers and escalating expenses for feed, energy and transportation.
A carbon dioxide shortage, driven by the shuttering of ammonia facilities – CO2 being a by-product of fertiliser manufacturing – owing to elevated energy costs, has also resulted in reduced output across º£½ÇÊÓƵ farms.
Severe weather conditions stemming from biodiversity decline and environmental deterioration have likewise increasingly impacted the º£½ÇÊÓƵ's capacity to cultivate particular food types.
These challenges have been further exacerbated by the recent rise in operational costs for º£½ÇÊÓƵ farms as increased wage taxes begin to take effect.
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