Meat firms would benefit if inflation matched property

The firm’s infographic, ‘If Everything Rose Like House Prices’​, looks at food inflation since 1971 and compares it with the increase in house prices in the same period (see below).

According to the data, a 1kg packet of white fish fillets had experienced the largest increase, rising from 58p in 1971 to £13.10 last year. Good news for fish processors, but not as good as if the price of fish had risen by the same amount as property – fish fillets would in that case be £25.26.

House prices have increased by 4,000% since 1971, with average UK property value increasing from £5,632 to £242,415 in 2013.

Jonathan Addy, head of content at Neomammalian Studios, told FoodManufacture.co.uk: “Our main point was to look at the high inflation of house prices using food prices as a comparison. It is easy to see the inflation if you show that a chicken would be £51, food is more recognisable.​

“When you look at how expensive houses are, it could suggest that food is undervalued.”    ​

Experienced the most gains ​

Meat producers would have experienced the most gains if food prices had experienced 4,000% inflation, with a leg of lamb costing £53.18 instead of £8.26 and a 2.5kg chicken costing £51.31 instead of an average of £6.

But, how much inflation has a Mars Bar, loaf of bread, eggs, fruit, vegetables and a pint of beer experienced and how expensive could they be?

To see the full extent of food price inflation between 1971 and 2013, as well as what the price different food would be if it had experienced the same increase as property, see the infographic at the bottom of this article.

Meanwhile, inflation dropped below the government’s target of 2.0% for the first time since November 2009, the Office for National Statistics (ONS) revealed today (February 18).

The Consumer Prices Index (CPI) – the headline measure of inflation – grew by 1.9% in the year ending January 2014. This was slightly down from 2.0% in December 2013.

Basket of shopping ​

To put the CPI figure into context, a basket of shopping that cost £100 in January 2013 would have cost £101.90 in January 2014, according to ONS.

The rate of inflation faced by households was 1.9% in January 2014.

“In 24 out of the last 27 months, prices in the housing, water, electricity and gas and other fuels sector have been the largest contributor to the inflation rate and currently account for a quarter of inflation,”​ ONS said in a statement.