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.
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.
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.
“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
Manchester Arndale is slashing prices on food and drink across the shopping centre
Daisy Jackson
Manchester Arndale’s Summer Scran Fest is back – and that means there are some absolute bargains to be had on food and drink right across the shopping centre.
Throughout the month of August, restaurants, cafes and kiosks within Manchester Arndale will be offering some serious offers and deals.
This ranges from 25% off to buy-one-get-one-free deals, plus free meals for kids and plenty more.
Venues taking part in the Summer Scran Fest include Archie’s, Subway, Barburrito, Pizza Hut, HOP Vietnamese, Michaels Coffee House and plenty more.
And the leisure destinations within Manchester Arndale are getting stuck in too – think free drinks, combos and more at venues including King Pins and Urban Playground.
There are plenty of Manchester-born businesses getting involved and offering bargains to us all, like Archie’s giving out free soft serve when you spend £10, Barburrito offering a £10 meal deal (burrito, tortilla chips and a soft drink), and Lazy Sundae giving a free scoop of ice cream with any large drink purchase.
Big brand deals include a £5 meal deal at McDonald’s (4 Chicken McNuggets, Cheese burger or Mayo chicken; fries; and medium cold drink), and 25% off at Pizza Hut.
There’s 20% off at Sides in the Manchester Arndale Summer Scran FestLazy Sundae will do a free ice cream with a large drink purchase
Then there are newcomers to Manchester Arndale taking part in the Summer Scran Fest.
HOP, a new Vietnamese street food venue on Market Street, is doing 25% off, while Michaels Coffee House will knock 15% off their seasonal favourites like an Iced Maple Oat Matcha or an Iced Rose Coconut Matcha.
There’s also a 20% discount at Sides, the chicken shop backed by YouTube sensations Sidemen.
And as for leisure destinations – Urban Playground is doing 18 Holes of putters tech-infused mini golf, plus any three small plates from The Butcher menu for £28.20.
Kind Pins has 20% off food and drink, and Immersive Gamebox will do 20% off plus a free drink when you book a 60 or 30 minute gaming session.
Pick up a voucher booklet in the centre or download your offers from the Manchester Arndale website from 1 August.
Manchester dessert and sandwich stars Gooey are set to open another city centre site
Danny Jones
0161’s world-famous dessert stars, Gooey, are set to open another city centre site – their third in Greater Manchester and soon-to-be fifth overall.
Known for their incredible cookies, doughnuts, brunch, legendary French toast and plenty more, Gooey made their first foray out of their hometown with a Liverpool location last year, and are now set to consolidate their Manc base even further.
Set to open in a prime piece of real estate, the latest Manchester Gooey store will be opening in a sizeable empty unit over on Circle Square, right next to the Asda Express and in the heart of the student living and leisure complex.
Benefitting from being easily seen from along the bustling Oxford Road Corridor, you can expect this place to be packed to the rafters from the off on day one.
The signs are already in the window.That unreal French toast dripping in syrup.Credit: The Manc Eats
There are few details on what the new arrival might have in-store beyond all the brand favourites at this early stage, but each Gooey store shop does have its own charm.
From their original bakery and cafe over in the Northern Quarter, to the three kiosks in Ducie Street Warehouse, The Trafford Centre Selfridges and over on Merseyside’s iconic Bold Street, they all offer something a little different.
As for any hints at the launch plans, fans are yet to be given an official opening date, but you best believe you’ll be the first to know the second we do.
In case you’ve never tried or even come across the indulgent and fast-growing independent business before, another popular part of their menu is the bits between bread.
Touching on the upcoming addition, Charlotte Wild, Head of Retail & Leisure at Bruntwood SciTech – the team behind Circle Square’s ever-expanding offerings – said: “Gooey is an incredible local brand who are continuing to grow, evolve and innovate, with ever more exciting desserts.
“They will make a fantastic addition to the Circle Square community, and we look forward to seeing the impact they make in the coming months.”
In case you wonder how much we love this place and just how excited you should be about another one landing here in the city centre, sometimes we just put together random appreciation posts for that one, aforementioned butty alone.
Local foodies will also be buzzing to hear that they’re not the only calorific cult favourites that are bringing more to our mouths in 2025.
First, it was Brewski, followed by American Pies; then it was Foldies, and now the beloved culinary brand is launching yet another new concept here in Manchester.