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
Beloved Manc butty shop Bada Bing set for a sensational return to the city centre
Danny Jones
Sandwich lovers rejoice because one of the finest butty shops to ever grace Manchester is returning: that’s right, Bada Bing is bada-back!
The Sopranos-inspired deli and sandwich shop that took its name from one of the central locations featured in the iconic US drama (yes, the strip club), was a huge success when it first opened in Manchester a few short years ago, so it was a huge blow when it closed in February 2022.
Starting out by serving sandwiches out of a window at The B Lounge pub on Paton Street near Piccadilly, before moving to a small kitchen on Radium Street and eventually setting up their stall inside Ancoats General Store, they would regularly have lines around the block every lunchtime.
These Italian-American sarnies were so popular you’d often struggle to get your claws on one – and believe us, they really are a two-handed task – as they’d sell out on what felt like most days. But now, whether you were a regular or someone who missed out, there is hope once again:
Announcing their sensational return to a new site over in the Northern Quarter, which will now mark the fourth premises they’ve popped up at, Bada Bing is back with a bang and, as you can, they dropped the news with one of the best reveal videos we’ve ever seen.
If you know, you know…
Set to take over 125 Oldham Street, owners Sam Gormally and Meg Lingenfelter haven’t yet graced us with an opening date but the new unit should hopefully be open sooner rather than later.
The duo, who previously worked at fellow NQ favourite Another Heart to Feed, came up with the concept during lockdown and it didn’t take long for the idea to take off, nor for them to earn their spot amongst the very best sandwich places in Manchester.
Seriously, these things were so big and unwieldy (in the best way possible) that they even used to come with eating instructions: both hands and the trademark Tony Soprano hunch recommended, though the slightly stained wife-beater, boxer shorts and open dressing gown look is optional.
From slices of provolone cheese, all the thinly sliced Italian meats you could think of and the closest thing to actual ‘gabagool‘ as you’ll find in Greater Manchester, the menu was fitting of being served up to the iconic characters that once sat outside Satriale’s and a big approving grin from the man himself.
Simply put, we cannot wait and we will certainly keep you posted when we find out exactly when Bada Bing confirms their official reopening date.
Burger King is giving away free burgers to new drivers today
Emily Sergeant
Burger King will be giving away burgers to drivers who have recently passed their tests for free of charge today.
In case it wasn’t on your radar, tomorrow (Thursday 24 July) is actually National Drive-Thru Day, and in a bid to properly celebrate this unofficial holiday, Burger King has decided to hand out a bunch of freebies to newbies today.
The fast food chain is asking all new drivers to “buckle up”, head on down to their nearest Burger King drive-thru, and help themselves to a free burger.
All newly-qualified drivers will be able to take their pick from either the Whopper or Chicken Royale without parting ways with a penny, and all they’ll need to do the claim their freebie is simply show off their learner’s ‘L Plates’ to the staff at their local Burger King restaurant.
/ Credit: Burger King UK (via Instagram) | Supplied
Hundreds of Burger King drive-thrus across the UK are taking part in the one-day promotion – including several across in Greater Manchester.
Although it might seem a little too good to be true, there’s a reason Burger King has chosen to dish out the freebies, and that’s because the company says it knows that one of the first activities newly-qualified drivers like do once they’ve passed their test is make a pit stop at a drive-thru with their mates to show off their new wheels and skills.
Sometimes though, navigating a drive-thru for the first time can be tricky, and this leaves new drivers feeling a bit like a rabbit in the headlights.
Luckily with this one-day Burger King offer, new drivers’ first drive-thru trip couldn’t be any easier.
The offer is available nationwide today (Wednesday 24 July) at Burger King drive-thru lanes only, while stock lasts, and newly qualified drivers must verbally mention “BK Plates” at the drive-thru lane to unlock their free burger.