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
A Withington boozer has been named ‘Pub of the Year’ in South Manchester for 2026
Danny Jones
A pub in Withington has just been named the best pub in the South Manchester area for 2026, as the area continues to back CAMRA and proper boozers.
It’s not the first time they’ve picked up this kind of gong either.
Technically, it’s picked up the award for ‘Pub of the Year for Stockport and South Manchester’, but the venue itself sits on the edge of Withy and the outskirts of Fallowfield.
Operated by legendary local business, Hydes Brewery, they claim the trophy after having just missed out on the top spot in 2025, coming second behind The Crown in Heaton Mersey.
Not this time, though, as the Hydes pub located along Wilmslow Road won this year’s prize by some distance, in fact.
The Salford-born beer makers obviously have lots of sites all over Greater Manchester, many of whom regularly pick up monthly Campaign for Real Ale (CAMRA) awards – not to mention collecting a fair few annual ones – The Vic in Withington is one thought to have been long overdue for the grand prize.
Beloved by regulars and other nearby residents in and around the borough alike, the local community believe this place to be much more than just another watering hole.
For example, it’s been celebrated for its diversity and grassroots work throughout the area, with the team receiving praise for their extensive charitable efforts, such as with the Mero’s World Foundation.
The organisation was established by native Manc mum, Kelly Brown, in memory of her son Rhamero West, who was tragically stabbed to death in Manchester in 2021 at the age of 16; the charity aims to combat knife crime and support youth in the community through various initiatives.
As for The Vic, they’ve helped support the cause for many years, raising vital funds through their New Year’s Eve ticket sales, raffles, and with the management team taking on multiple athletic and endurance challenges on behalf of the cause.
Put simply, husband and wife landlords, Alyson and Paul Mitchell, are absolute legends.
Commenting on the win, Alyson said in a statement: “We’re so proud to win this award, and it is a real honour to be named the best pub in the region by CAMRA. We love what we do, but we couldn’t do it without our amazing team and the incredible support and top-quality ales we receive from Hydes.
“The Victoria is a truly special place for us, and we genuinely have the best customers you could ask for, from students to our local regulars. Winning this year after coming so close previously proves that our collective hard work has really paid off.”
Aside from serving a regular lineup of five or five Hydes cask beers, showing all the games on the box, and generally becoming a bit of a cornerstone of the community, Vic customers also helped raise £1,000 for the Withington Civic Society to install a much-needed community defibrillator outside the premises.
These are the kinds of things we want to hear happening in public houses across the ten boroughs, and it’s yet another instance of South Manchester, specifically, enjoying its moment in the sud-soaked sun.
Manchester’s own egg butty shop Egg & Co opens on Deansgate – right near rival Eggslut
Daisy Jackson
Manchester-born Egg & Co has hatched a new opening for us, launching their first restaurant and takeaway on Deansgate.
It’s a familiar name to a lot of us already thanks to their recent residencies at Ancoats General Store, Stretford Foodhall, and Kargo in Salford.
But now it’s time for Egg & Co to crack open the doors to their first bricks and mortar, stand-alone site.
From here, you’ll be able to grab their unbeatable breakfast sandwiches, where soft scrambled egg is piled into warm brioche buns.
There are a dozen or so breakfast butties on the menu here (yes, they do all feature egg), with other fillings ranging from beef patties to turkey bacon to caramelised onion.
Manchester’s own egg butty shop Egg & Co opens on Deansgate / Credit: The Manc Group
And there’s more – sides here include truffle hash browns, curly fries, and chicken bites, with whisperings that banana pudding might be making the menu before too long.
And new for this location are the drinks – coffees, fruit juices, matcha, and a full fridge of soft drinks.
The space itself opens this week on Deansgate and is a clear homage to eggs in general.
From the butter yellow frontage to the yolk-bright tiles inside, along with egg-shaped table numbers and oval cut-outs for the bins, it’s like sitting inside an actual egg.
Even the self-service menu board is housed inside a giant egg structure.
You’ll be able to grab unbeatable breakfast sandwiches / Credit: The Manc Group
Egg & Co will open on the same street and within a few minutes’ walk of Eggslut, the cult London takeaway that took its first foray into Manchester earlier this year.
But Egg & Co’s menu significantly undercuts Eggslut’s, and it was founded right here in Manchester – we’ll leave it up to you where to spend your money.
Georgina Pellant -
23rd May 2023 
