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.
ADVERTISEMENT
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.
ADVERTISEMENT
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.
ADVERTISEMENT
“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
The Manchester restaurant serving up the ‘world’s hottest curry’ for just a few days
Danny Jones
City centre favourite Zouk is serving up ‘the world’s hottest curry’ again to celebrate National Chilli Day next week.
The popular tea bar and grill located on Chester Street just off Oxford Road is slap bang in the middle of student central and has hordes of patrons lining up day in, day out, to taste their incredible Indian and Pakistani cuisine.
Now, to celebrate every spicy-food lover’s favourite day, Zouk is putting on special, limited-time-only menu to cater to all you heat freaks and speaking collectively on The Manc‘s behalf (several of us having tried it), it’s no joke.
The World’s Hottest Curry will be available for five days from Monday 24 to Friday 28 February, with a challenge on Thursday 27 February with prizes to anyone who can finish the fiery karahi.
The dishes
When it came to coming up with the world’s hottest curry, Zouk didn’t have to look far for inspiration, they simply picked the world’s hottest chilli: the Carolina Reaper Chilli.
Combining the 1,569,000 Scoville scorcher of a chilli with their much-loved and already spicy chicken karahi and vegetable karahi recipes, they knew they were on a winner. You might have to sign a waiver to eat it but that’s all part of the fun, right?
Typically prepared in a wok and cooked over hot flames with tomatoes, ginger, garlic, peppercorns and cumin to create the sauce base, the karahi originates from the Northwest region of Pakistan and has a great flavour. Depending on how brave you’re feeling, you can have it as a kebab or a full curry.
Credit: Supplied
That being said, this version does contain dried Carolina Reapers so you might not taste much beyond the heat of the sun after a few seconds. While the chilli is deemed suitable for human consumption, even Zouk’s chefs have admitted to struggling with the dish. Gulp. So, what can you win?
The challenge and prizes
Us Brits love a good curry and we already know that plenty of you won’t be able to resist the urge to take on the Reaper Challenge simply out of pride, so we might as well just tell you what you’ll have to eat in order to win the prizes.
Here’s what’s up for grabs:
Finish the full Carolina Reaper Curry (either chicken or veg) in one sitting (max eating time 30 minutes and no helping from companions), Zouk will give you the meal for free.
PLUS, a £50 Zouk Gift Card so you can come back at a later date to try their full menu (including some less omg-spicy options).
You’ll also get a Zouk Ice Cream Sunday to help cool off afterwards. Trust us, you’ll need it.
Issuing a statement for National Chilli Day and the Reaper Challenge, owner Tayub Amjad said: “Our food is usually more about flavour than heat but it’s National Chilli Day, and we know our customers love this challenge.
“For those who complete the challenge, you still have chance to come back and dine on us at a future date, so you will still get to experience the real Zouk too.”
What you thinking, Manchester? Are you up for taking on the world’s hottest curry?
Prestwich pizzeria Dokes announces closure as neighbourhood goes through big changes
Daisy Jackson
One of Prestwich’s best-loved independent restaurants has announced the end of its current chapter, saying that it’s become too difficult to operate with tighter and tighter margins.
Dokes, a pizzeria that also served arguably the town’s best roast dinner, has said that it’s going to ‘have to call it a day’ after three years in the proudly independent neighbourhood.
The news comes just months after Rudy’s opened its first Prestwich restaurant just across the road from Dokes, though that of course may just be a coincidence…
The restaurant comes from the same team behind Elnecot in Ancoats, and opened in 2022, promising delicious pizzas made with (wherever possible) British ingredients.
In a statement issued today, chef and owner Michael Clay said that ‘it’s just not been possible for us to make the money required for the size of team needed to run as a pizza restaurant’.
He wrote: “We are a small restaurant and the margins that were there pre-Covid are not achievable anymore at this scale and only getting tighter month on month.”
He then teased that they would be keeping the Bury New Road site on, with plans to reopen as a new concept.
Prestwich has been growing in popularity in recent years, with a blossoming food and drink scene and healthily increasing house prices.
It’s on the precipice of a £100m overhaul too, which will see the Longfield Centre transformed and new facilities built near the tram stop, including a community hub, a new village square, a market hall, flexible retail and leisure spaces, landscaped outdoor and green spaces, a new travel hub off Fairfax Road and around 200 homes.
It’s always been a village packed with local small businesses until this year, when both Rudy’s and Gail’s opened up – prompting this heartfelt statement from another local indie.
Dokes’ full statement reads: “After nearly 3 years of trying our hardest, unfortunately we’re going to have to call it a day.
“Having originally taken on the premises in between the two lockdowns (remember them?!), we’ve been extremely proud of what we have achieved under sometimes unbelievably difficult circumstances. Our staff have been the cornerstone of this and we would like to thank them for all of their hard work. The feedback we have received over the past couple of years on their food, service and hospitality has been absolutely incredible and we are extremely grateful for the hard work they have put in and the commitment they have shown.
“We feel like we have created a product that you have absolutely loved and a space that you have enjoyed coming to and we now really feel like a part of the Prestwich community – and for that we can’t thank you enough! You came for the pizzas and stayed for the roasts and it’s been a lot of fun.
“Try as we might though, it’s just not been possible for us to make the money required for the size of team needed to run as a pizza restaurant. We are a small restaurant and the margins that were there pre-Covid are not achievable anymore at this scale and only getting tighter month on month.
“So it is with a heavy heart that we are closing the door on this chapter BUT…we aren’t going to be leaving you completely…
“We have plans for the place which we will be updating you about very soon so please watch this space for more details. We hope you’re going to love it.
“As Dokes, Sunday 9th March will be our final service so please come down over the next couple of weeks, grab a pizza or a roast and say hello. It would be lovely to see you all. Bookings are open and the cellar is stocked so lets fill the little place up and go out with a bang!
Georgina Pellant -
23rd May 2023 
