News
Food prices decrease for first time since September 2021
According to the latest figures from the Office for National Statistics (ONS), the price of food and non-alcoholic beverages fell on a monthly basis by 0.4% representing the first decrease since September 2023.
The decline was largely driven by prices for bread and cereals, which fell 1.3% during last month. This was the largest fall in bread and cereals prices since May 2021.
Meanwhile, the inflation rate, calculates how much prices have increased over a 12 month period, fell to 7% in January, down from 8% in December 2023. This is the lowest the inflation rate has been since April 2022, with it peaking in March 2023 at 19.2%.
The past 10 consecutive months have seen a decline in the rate of food and non-alcoholic beverage inflation, but prices do remain high.
Between January 2022 and January 2024, the price of food and non-alcoholic beverages rose by 25%. For comparison, the previous 10 years saw an increase of just 9%.
'Any reduction is important to households struggling to afford food'
Commenting on the latest figures, Balwinder Dhoot, director of sustainability and growth at The Food and Drink Federation, said that while the decline in the rate of inflation was encouraging, challenges persist within the food sector.
“Any reduction is important to households struggling to afford higher food bills, and for business who are paying higher salaries at a time when they are continuing to streamline production costs to deliver competitive prices for shoppers,” Dhoot added.
“Unpredictable weather patterns persistently impact agricultural yields. Ongoing navigation challenges in the Red Sea, coupled with rising shipping costs, may soon exert pressure on energy prices, and, therefore, on food prices, given the energy-intensive nature of the food and drink industry. The extent of this impact hinges on the duration of ship diversions from the Suez Canal and any escalations in the Middle East.
“We are also seeing increased regulatory costs being put on industry by government. To support food and drink manufacturers and help hard pressed shoppers, the government must reduce unnecessary regulatory burdens and urgently reassess costly ‘not for EU’ labelling requirements for food sold in Great Britain.”
In other news, a food firm has been fined £320k after a worker died at its site.
