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
Inside Manchester’s new padel club with a Pot Kettle Black cafe and courtside cocktail bar
Daisy Jackson
Padel is the fastest-growing sport in the world, and it’s really picking up speed in Manchester now too with another city centre club opening this month.
The Pollen Club is a little different to the others, in that it’s fully undercover and protected from Manchester’s less-than-favourable weather.
And another thing that makes it a must-visit is the cafe attached to it – a third site for the beloved Pot Kettle Black.
The Pollen Club and Pot Kettle Black have both taken over a prominent city centre spot just off Deansgate, at the foot of the recently-opened Treehouse Hotel.
There are two state-of-the-art padel courts inside, with a mezzanine terrace for enjoy Pot Kettle Black’s offerings.
In summer, there are plans to launch a bar downstairs too, where you can sip spritzes courtside from loungers and swing seats.
The exciting new Manchester padel club will host pop up events, DJ takeovers and an extended evening food offering.
Pot Kettle Black are part of the new padel clubInside Manchester’s new padel club, The Pollen ClubPot Kettle Black are part of the new padel club
And even if you’re not heading inside The Pollen Club, Pot Kettle Black has a grab-and-go hatch facing onto Blackfriars Street, making their delicious coffees, sandwiches and pastries (from their own bakery Half Dozen Other) even more accessible.
Commenting on the opening of the new site, Pot Kettle Black co-owner, Mark Flanagan said: “We’re absolutely thrilled to have opened our third Pot Kettle Black site at The Padel Club. This achievement is a testament to the hard work and dedication of the team.
“After ten years in the city we’ve been enjoying seeing some familiar faces stopping by for a coffee and we can’t wait to get started on our programme of summer events!”
Insomnia Cookies is giving away FREE cookies to anyone with these two names
Emily Sergeant
Manchester’s late-night sweet treat spot Insomnia Cookies is dishing out freebies this week… but there’s a catch.
You have to be called one of two specific names to get one.
With the long bank holiday weekend upon us, those in-the-know will also have noticed that this Sunday isn’t just Easter Sunday, it also happens to be 4/20… and that means Insomnia Cookies is back with its ‘blazing’ £4.20 deal, giving you the chance to bag a box of four warm cookies while saving nearly £7 at the same time.
But even better still, if you happen to have either the first or middle name ‘Mary’ or ‘Jane’, then you can also get yourself a warm tasty cookie for free.
To mark both 4/20, and celebrate the launch of its newest strain of mouthwatering cookie, the Mary Jane, anyone called Mary or Jane can pop into either of Insomnia Cookies’ two Manchester city centre sites – Cross Street and University Green – show their valid ID with their name on, and walk alway with a cookie free of charge.
If you want to try the new Mary Jane cookie, then this limited-edition special is made up of a cookies n cream dough base, packed with rainbow sprinkles.
The freebie deal has been running all week, and you have up until 3am on Monday 21 April to take advantage of it.
Customers will be limited to one free cookie per day.
Insomnia Cookies is giving away free cookies to anyone with these two names / Credit: Insomnia Cookies UK
If you aren’t lucky enough to be called one of those two names though, then thankfully you can still make some great savings on a classic four-pack of cookies over the spring bank holiday weekend, and for every four-pack sold, £1 will be donated to Groundwork – a charity helping make Manchester greener for nature and for local people.
“We’re calling for Marys and Janes to join us to live the high life with free cookies all week,” commented Millie Ralston, Head of Marketing at Insomnia Cookies.