Businesses are cautiously optimistic about the year ahead despite sombre forecasts
Food prices have been rising since 2021. Food and non-alcoholic drink prices were 16.2% higher in October 2022 compared to the previous year, based on the official CPI measure of inflation. This is up from 14.5% in September 2022, the 15th consecutive monthly acceleration in the annual food inflation rate. It is highest rate of increase in food prices since 1977 according to the ONS.
Source: ONS, Food and non-alcoholic drink component of CPI, series D7G8 (16 November 2022 update)
Analysis by the ONS in April 2022 noted supply chain challenges, rising costs like energy costs and increased transport costs, and labour shortages have led to rising food and drink prices.
Following the Russian invasion of Ukraine, food prices on international markets have risen as Russia and Ukraine are important producers of various agricultural products, such as wheat.
Rising food prices, as well as more a more general increase in the cost of living, has resulted in increased demand for food banks.
House of Commons Library resources on the cost of food
Inflation and the cost of food
Rising cost of living in the UK– House of Commons Library
Supply chain issues and the cost of food
The effect of the war in Ukraine on UK farming and food production – House of Commons Library
The National Food Strategy and food security – House of Commons Library
Avian influenza outbreak – House of Commons Library
Food insecurity and food banks
Food Banks in the UK – House of Commons Library
Food poverty: Households, food banks and free school meals – House of Commons Library
Food bank demand and the rising cost of living – House of Commons Library