Food prices driven up by high meat and tea costs

Rachel ClunBusiness reporter, BBC NewsPA MediaFood costs have continued to rise, new analysis showsRising meat and tea costs have helped drive up meals value inflation for the sixth consecutive month, a survey suggests.Meals costs rose by 4% within the 12 months to July, up from a 3.7% improve within the 12 months to June, in line with the most recent store value monitor from the British Retail Consortium (BRC).The BRC’s chief govt Helen Dickinson stated tighter international provides for staples together with meat and tea have hit wholesale costs arduous.The brand new figures echo separate analysis revealed final week, which discovered family grocery payments had been heading in the right direction to rise by £275 this 12 months.The BRC survey discovered inflation – the speed at which costs rise – for recent meals together with fruit and greens remained at 3.2% within the 12 months to July, however inflation for cabinet items elevated to five.1% over the identical interval.Ms Dickinson stated households may have seen their larger meals payments.”Staples corresponding to meat and tea had been hit the toughest as wholesale costs for each classes have been hit by tighter international provides. This has helped push up total store costs,” she stated.Andrew Keeble, managing director and founding father of Heck Sausages, instructed the BBC’s At present programme there had been a “good storm” of things driving up the value of beef and hen particularly.He stated hen costs alone have risen up to now two years from £2.85 a kilo to £5.50, pushed by a mixture of avian flu and decrease inventory depth, which has meant lowering the variety of chickens in every shed.”{That a} good factor, we totally assist it however you get fewer chickens in a shed [and] there aren’t sufficient sheds to place it bluntly and that’s driving availability costs by way of the roof for the time being,” Mr Keeble stated.He added that his firm was attempting to not move on the added prices to retailers, and supermarkets had been additionally attempting to maintain prices down for buyers.Nonetheless, he stated “I believe it simply will get to the purpose the place that is now truly coming by way of and that is why you are now seeing these will increase.”Growing meals costs added to the upper than anticipated improve to UK inflation within the 12 months to June.The most recent official figures from the Workplace for Nationwide Statistics (ONS) put UK inflation – as measured by the Client Worth Index (CPI) – at 3.6%, up from 3.4% in Might.In accordance with the ONS, costs for meals and non-alcoholic drinks rose by 4.5% within the 12 months to June, the best fee since February 2024.Mike Watkins, head of retailer and enterprise perception at NIQ, stated growing inflation would concern Excessive Avenue retailers hoping to retain prospects over the summer season vacation season.”Customers’ family budgets are coming beneath strain with the meals retailers now seeing value will increase above CPI,” he stated.”Nonetheless, value competitors helped by promotional exercise will nonetheless imply that buyers can get monetary savings by purchasing round.Ms Dickson stated there have been “a number of shiny spots” within the analysis, “with reductions in trend and furnishings providing shoppers an opportunity to refresh their wardrobe and houses.”General store value inflation elevated to 0.7% from 0.4% in June, and up from the three-month common of 0.3%.Final week, separate analysis from Worldpanel by Numerator discovered that meals costs had risen by 5.2% in comparison with final 12 months, led by value will increase for chocolate, butter, spreads and recent meat.