Food to overtake energy bills in driving up UK cost of living crisis
Until now, the cost of living crisis has been most closely associated with energy bills - but soon food costs will overtake energy as the main inflation driver.
Food costs are set to overtake energy bills in driving up UK inflation this summer, a new report has warned.
The report by the Resolution Foundation has found that the cost of living crisis – until now dominated by sky-high energy bills – will soon be driven by rocketing food prices, once again hitting poorer UK households the hardest.
According to the report, whilst energy prices have risen faster in the UK it is still food that makes up the largest share of a typical household’s outgoings.
As a result, as food prices continue to rise whilst energy bills fall back this summer it is predicted that the cost of eating will become the biggest threat to people’s finances.
Food prices have increased by 25 per cent over the past year and a half, greatly impacting the squeeze on living standards in low and middle-income households.
And now, grocery bills are expected to increase again over the summer.
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According to the thinktank behind the report, it was not clear that politicians were currently prepared for another year of food price rises or that “policy debates have caught up with the scale of what is going on”.
Food price inflation reached around 19 per cent in March, the highest in almost half a century. As a result, the report asserts that food prices will be ‘contributing far more than energy to CPI inflation through the remainder of 2023.’
The report said: “By this summer, food costs will have overtaken energy bills in the scale of the shock they are administering to family finances.”
The Resolution added that it can also model the scale of the impact across individual households, suggesting that this summer 16 million households (56 per cent) will face a big shock when it comes to paying for their food.
The Bank of England governer Andrew Bailey told business leaders earlier this month that he was ‘concerned’ that food and other non-energy prices would remain elevated.
Typically, food prices in the UK fall in the summer as locally-grown crops replace those imported from abroad.
However, factory gate prices for milk, meat and other foods have accelerated, in some cases by more than 50% year on year.
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The Resolution Foundation’s report, Food for Thought, says food prices are expected to contribute “more to overall inflation than energy” in the months ahead.
“Between March and September 2023, food prices are expected to contribute around 2 percentage points to inflation each month, while the contribution of energy prices is set to fall from 3 percentage points to less than 1,” the report estimates.
The cost to the nation from higher food prices since the 2019-20 financial year would be £28bn by the end of the summer, compared with an extra £25bn cost from higher energy prices, it added.
Lalitha Try, one of the report’s authors, said: “Everyone realises food prices are rising but it’s less clear that the scale of the increases has been understood in Westminster.”
“What rising food prices have in common with surging energy bills is that they pose a greater challenge to lower-income households, who spend a higher proportion of their income on food – 15%, compared with 10% for the highest-income households in 2019-20.
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“As a result, the effective inflation rate for the poorest 10th of households was almost 50% higher compared with the richest 10th of households in March.”
Featured image – RawPixel
Eats
New pie shop with Indian-inspired fillings opens at Greater Manchester train station
Emily Sergeant
At long last, Patel’s Pies – the proper pie shop with Indian-inspired fillings – has got its very own site, and we couldn’t be happier about it.
The business is already a familiar name (to the blue half of the city, of course) thanks to its matchday spot outside the Etihad Stadium, but now, Patel’s Pies will be serving its delicious savoury bakes to the people of the Heatons too – with its brand-new pie shop now opene at Heaton Chapel train station.
Here you’ll find their legendary curry pies with homemade pastry – filled with the likes of keema, butter chicken, and beef madras.
You can grab hot and cold pies to take away, all setting you back an affordable £5.95 each.
Patel’s Pies is now open at Heaton Chapel train station / Credit: The Manc Group
From 11am-2pm, you can also get your hands on the lunch deal, which is any pie, masala mash, spiced mushy peas, and gunpowder gravy.
Patel’s Pies has teamed up with Manc legends Gooey, so you can grab the bakery’s famous cookies and doughnuts here too.
There’ll also be local beers and canned drinks up for grabs.
All pies will set you back an affordable £5.95 each / Credit: The Manc Group
Inside, the shop keeps things traditional, complete with classic pie warmers on the counter and hand-painted signage by Cactus Sign Painting, giving the space the feel of a proper old-school pie shop with a modern twist.
Announcing the new venture, Steve, the owner of Patel’s Pies has said: “We’d love for you to come down, say hello, and support our new venture. It’s our very first day, so please bear with us as we get settled in, we can’t wait to serve you all.”
Patel’s Pies is open now at Heaton Chapel Train Station on Tatton Road South.
Featured Image – The Manc Group
Eats
Trendy Ancoats wine bar Blossom Street Social to close after six years
Emily Sergeant
Trendy neighbourhood wine bar Blossom Street Social has announced its closure after nearly seven years serving the Ancoats community.
Blossom Street Social first opened its doors back in 2019, just months before the country – and the res of the world – was plunged into the COVID-19 lockdowns, but despite all the challenges during the early days, this wine bar went on to become a true staple of Ancoats life – hosting events, exhibitions, wine tastings, and everything in between.
But now, the owners have had to make the heartbreaking decision to close, saying they’ve ‘danced our last dance, played our last record, and poured our last glass of wine in Ancoats.’
Announcing the news in a statement to social media this week, Blossom Street Social said: “Blossom Street Social closes its doors after six and a half years at the heart of the Ancoats community.
Blossom Street Social has announced its closure after six years / Credit: The Manc Group
“When we opened in 2019, just months before the world changed forever, we couldn’t possibly have imagined the journey ahead. Through lockdowns, uncertainty and everything that followed, we somehow managed to build something that became far more than a wine bar.
“Wine was always at the heart of what we did, but so were the conversations, the music, the art and the community that grew around it.
“We’ve hosted tastings, exhibitions, launches, celebrations, social sessions and countless memorable nights. We’ve introduced people to wines they’d never tried before, watched friendships form and shared in some truly special moments.
“We’ve watched first dates become engagements, engagements become marriages, and couples return with babies in tow. We’ve celebrated birthdays, anniversaries, new homes and countless milestones alongside you. We’ve shared conversations, laughter, music and moments that mattered from our little corner of Ancoats. We will never forget them.”
The team then went on to thank ‘every customer, artist, DJ, supplier, collaborator and friend’ who became part of their story.
The owners also gave a special thank you to the staff members who stayed ‘to the very end’ and ‘showed up when it was hard’, admitting that they couldn’t have done it without them all.
Georgina Pellant -
23rd May 2023 
