The overall inflation rate in the UK is expected to remain high at 6.8% in 2023, above the Bank of England’s inflation target of 2%. According to Global Data the food inflation rate is forecast to reach 7.2% ‘exacerbating’ the financial burden on households and businesses across the country.
Inflation prices of all food items remained above 15% in January 2023 including milk, cheese, and eggs (31.1%), oil and fats (26.7%), bread and cereals (16%), fish (15.7%), vegetables (15.5%) and meat (15%).
Arnab Nath, economist at Global Data, commented: “The outbreak of bird flu, rising cost of production due to higher cost for feed and energy continue to remain the key concern for the domestic producer of vegetables, eggs, meats, and other dairy products.
“On the external side, bad weather conditions in Spain and Morocco, the UK’s key import partners of agricultural products, resulted in the shortages of farm produce, seriously challenging the food security.
“However, the food supply shortage is expected to ease in next three to four months as fresh farm producers just planted vegetables in February 2023 instead of December 2022, according to Lea Valley Growers Association (represents 80 growers across the UK).”
