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
This Manchester bar serves a bottomless cheese fondue with endless beer and wine
Georgina Pellant
There’s a bar in Manchester serving a bottomless cheese fondue with endless wine and beer, and it honestly sounds like the perfect treat.
While it might scream cosy winter night in, with a huge outdoor terrace, The Mews is also a firm favourite during the summer months.
Add in a board of melt-in-the-mouth charcuterie, springy pieces of garlic sourdough and a host of crunchy cheese biscuits, and you’ve got yourself the ideal afternoon if you ask us.
But there’s more. Alongside all that cheese and meat and bread, included in the price of The Mews’ bottomless fondue, cheese lovers can also enjoy 90 minutes of non-stop drinks.
Bottomless cheese fondue at The Mews on Deansgate in Manchester. (Credit: The Manc Eats)
Costing £37.50 each, included in the deal is a huge pot of melted Italian Fontina cheese served with homemade garlic croutons, sourdough crackers, and slices of British charcuterie.
You’ll also get to enjoy an hour and a half of endless pints of house pilsner and carafes of red or white wine to enjoy alongside.
Serving up to six people, the bottomless cheese fondue is available only when you pre-book, so make sure to get in touch ahead of your visit to let The Mews know that you’re coming.
If you’re not on the sauce, you can opt for the cheese fondue alone. Without the booze, it’s quite a bit cheaper at £25 for one, and £2.50 on top for any additional people who want to get stuck in.
Housed up on Deansgate Mews, just behind the main hustle and bustle of Deansgate, there’s plenty of space inside as well as a large, secluded terrace that is quite the suntrap (when the Manchester sun is shining).
Popular Manchester restaurant bar to give out FREE sausage rolls to people called ‘Greg’
Emily Sergeant
One of Manchester’s much-loved restaurant bars is doing a free sausage roll giveaway next week… but there’s a catch.
The catch being you have to have a certain name in particular.
It was only last week that popular high street chain Pret A Manger announced it would be slinging out free sandwiches to any Mancs with ‘Nic’ in their name over the late May bank holiday weekend, and now Tariff & Dale is getting it on the giveaway action, and it’s all to celebrate the iconic event that is National Sausage Roll Day.
In case you didn’t know – which is very likely, let’s be real – next Thursday (5 June) is the day dedicated to all things sausage roll.
So what better way to mark the occasion than with free portions of Tariff & Dale‘s legendary meaty treat?
The popular Northern Quarter restaurant bar is known for its creative comfort food, craft beers and cocktails, and laid-back industrial vibe, with one of the cult-classic dishes on its menu having always been the honey pork sausage roll – which just so happens to be a whopping 15-inches long, by the way.
Resembling something more of a pork wellington than a sausage roll, if you will, the dish is crispy, golden, and glazed with honey on top.
But to celebrate National Sausage Roll day, instead of parting with £9.50 for a portion or £48 for the full 15-inch thing, people with one specific name can actually get a slice for completely free of charge.
Tariff & Dale is giving away FREE sausage rolls to people with this name next week / Credit: Supplied
And that name is ‘Greg’, because if we’re honest, when it comes to sausage rolls, we all tend to think of Greggs.
So whether your surname is Gregory or Gregson, or you’re simply just called Greg, then all you need to do to claim your complimentary slice of sausage roll heaven is head on down to Tariff & Dale next Thursday 5 June from 12pm up until 9pm.