These were the words of BFFF chief executive Rupert Ashby in response the recent inflation figures, which hit a record 41-year high yesterday – 11.1% in the year to October, up from 10.1% the previous month.
“Our members are being hit by huge increases in the price of ingredients and energy costs not seen for a generation,” said Ashby. “Whilst they are doing everything they can to minimise the impact on customers, there’s simply no way they can absorb such massive price rises.”
More to be done
“Whilst the government has little control over the international factors driving inflation, they can act to extend the energy support being given to food business beyond the end of March. The food industry surely must be top of the list for continued assistance.”
Although the rise in inflation was expected, experts were surprised by such a strong increase hot on the heels of the Bank of England telling investors that rates won’t need to go much higher to curb spiralling inflation.
Finance broker XTB noted that UK growth expectations continue to be dampened and that also weakens demand for the British pound.
Wait and see approach
XTB director Joshua Raymond said: “Many investors are stepping back and waiting for tomorrow's Autumn Statement before making further moves in the pound and so we are likely to see much more sterling volatility tomorrow.”
The Chancellor of the Exchequer will present his Autumn Statement to Parliament tomorrow, Thursday 17 November 2022.
Meanwhile, Food and Drink Federation (FDF) chief executive Karen Betts has called on the Chancellor Jeremy Hunt in his Autumn Budget to support the sector as it faces soaring energy and ingredient prices.