News
Food and drink inflation rate falls to 1.3%
A rate of 1.3%, down from 1.5% in July, is the lowest reported since September 2021.
August also saw a return to an easing of the inflation rate after it remained steady between June and July. This came after 15 consecutive months of the rate falling.
The inflation rate captures the change in prices on a year over year basis.
Of the 49 food categories monitored by the ONS, 21 saw prices fall during August. Meanwhile, the rate of inflation was below 5% for 19 of the categories.
Prices fell the fastest for the jams and marmalades and cheese and curd categories at 5.9% and 4.7% respectively.
On the flipside, olive oil, cocoa and powdered chocolate and lamb and goat recorded the highest annual rates at 40.8%, 19.9% and 13.8%.
'Food and drink still requires investment'
Director for sustainability and growth at The Food and Drink Federation, Balwinder Dhoot, welcomed the news that food and drink price inflation was holding steady, explaining that was a reflection of the ongoing “stabilisation” of production costs across the supply chain.
Nonetheless, he called for further funding for the sector: “While recent economic and policy volatility has eased, investment in our sector is key to ensuring it can continue to prosper and grow. By putting the food and drink industry at the heart of its industrial strategy, government can strengthen the nation’s food security, boost investment, and support more jobs.
“Furthermore, with export volumes down 20% in the first quarter of 2024 and recent import regulations creating administrative barriers, it’s vital that government prioritises easing the bureaucratic burden and cutting unnecessary costs and processes in order to strengthen the relationship with our largest trading partner, the EU.”
In other news, more than 700 workers at a Bakkavor facility in Spalding are set to take part in continuous strike action from 27 September, Unite the Union has announced.
