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
You can now get Deep South-inspired BBQ dishes on Manchester’s Deansgate
Daisy Jackson
There’s a brand-new menu of smokehouse-style BBQ dishes being served up on a sunny terrace on Deansgate.
Motley, the neighbourhood bar and restaurant on the corner of John Dalton Street, has added an authentic smoker to its kitchen.
That means they’ve got a whole load of new dishes, slow-cooked over hickory wood, that are bringing a taste of a Deep South BBQ to Manchester city centre.
The smokehouse-style meats are all seasoned in-house and cooked for hours, for a perfect fall-off-the-bone experience.
It might be an authentic American smokehouse menu, but it’s firmly British too, with most products locally sourced.
You can now get Deep South-inspired BBQ dishes on Deansgate / Credit: The Manc Group
Motley are calling on local suppliers like Althams Butchers (established since 1856) for their meat, plus greengrocers R Noone and Son, and Cheshire Farm for their real dairy ice cream.
Signature dishes on the new menu at Motley include slow smoked brisket, seasoned in Motley’s signature rub before being slow-smoked for more than eight hours.
There’s also a beef short rib with a chimichurri sauce, and a pork belly strip that’s seasoned with sage and onion and finished with a panko breadcrumb crust.
And for the veggies, there’s a vegan smoked veg kebab with courgette, mushrooms, bell pepper, sweet corn and red onion drizzled with homemade BBQ sauce.
Motley has added an authentic smoker to its kitchen / Credit: The Manc Group
Prices across the board start from just £16, served with beef dripping fries, rainbow slaw, pickles and homemade beef gravy.
As for small plates, you can expect short rib bonbons, homemade corn bread, spicy chicken wings, bang bang cauliflower, mac and cheese, and frickles.
House favourites like steak, vegetable hash, salads, and burgers will remain on the Motley menu.
Victor Gonzalez, food and beverage manager at Motley, said: “Our new signature smoked dishes are all crafted and seasoned in-house then slow cooked for hours over hickory wood to create rich and smoky melt-in-your mouth flavours.
“From our slow-smoked brisket to our home-made sides, everything has been carefully crafted to bring an authentic taste of the deep south to Manchester and we can’t wait for guests to try it.”
Motley can be found at 2 John Dalton Street on the corner of Deansgate in the city centre.
Featured Image – The Manc Group
Eats
Legendary Hulme community pub The Old Abbey Taphouse to reopen
Daisy Jackson
The closure of The Old Abbey Taphouse was a real blow for Hulme – the community pub was a bit of a local institution thanks to its grassroots music and inclusive atmosphere.
But now it appears that the spirit of the venue will live on, under the new name of The Abbey.
Some of the city’s most experienced independent operators – who have been behind venues like YES and The Deaf Institute, and music promoters Now Wave – will be the new custodians of this beloved local landmark.
The pub, which closed early last year, is currently being carefully restored ahead of its big relaunch just next week.
The vision for its new chapter will be ‘Old Pub, New Music’, creating a new home for grassroots live music and emerging artists.
There’ll also be affordable, hearty pub grub including Pieminister pies, and a huge range of beers from local breweries and beyond.
The team bringing The Abbey to life are Ruth Hemmingfield, Wesley Jones, Jonathan Wickstead and Gareth Butterworth – Ruth, Jon and Wesley are co-owners of YES; Ruth previously launched and programmed landmark Manchester venues including The Deaf Institute, Gorilla and Albert Hall; while Wesley and Jonathan, through Now Wave, promote hundreds of independent gigs and live events each year; and Gareth is the founder of multi-venue festival Manchester Psych Fest.
The team behind The Abbey pub. Credit: Piran Aston
The rear of the site of The Old Abbey Taphouse will be extended to create a new dedicated live music and events venue, while the cherished beer garden is given a facelift with new decking and its own bar.
The Abbey has stood in Hulme since the 1890s, playing an important role in the area’s heritage – this is where activist Len Johnson managed to overturn the shameful ‘colour bar’ policies of the 1940s.
Its restoration and relaunch is part of the flourishing Manchester Science Park development.
Matthew Pazos, Senior Retail Commercial Manager at Bruntwood SciTech, said: “Ruth, Wesley and Jonathan are the perfect custodians to breathe new life into The Abbey.
“Their reputation for running independent spaces in Manchester, alongside their live music expertise, will ensure this much-valued pub once again becomes a beating heart for Hulme and the wider neighbourhood.
Glimpses of The Abbey’s refurb. Credit: The Manc Group
“The reopening of The Abbey will create an inclusive new hub that welcomes everyone – from the Hulme locals who have looked after the pub over the years, to the Manchester Science Park community, university students, and the many residents and workers across the Oxford Road Corridor.
“We are delighted that such a culturally significant and important pub is set to open its doors once again.”
Ruth Hemmingfield from The Abbey commented: “We love a good pub. With The Abbey, we’re excited about bringing a brilliant old pub back to life, protecting what people loved about it, and creating something special: a great local, alongside a vital grassroots music venue for the area. Honouring the pub’s history while building its future.”
Georgina Pellant -
23rd May 2023 
