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.
ADVERTISEMENT
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.
ADVERTISEMENT
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.
ADVERTISEMENT
“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 cafe Idle Hands mobbed by huge swarm of bees who took over outdoor tables
Daisy Jackson
One of the Northern Quarter’s most popular cafes had an unusual issue on Saturday afternoon, when tens of thousands of bees paid a visit.
It seems the swarm of bees had got wind of Idle Hands’ legendary pies and took over one of the venue’s outdoor tables.
The cafe had to call in a local beekeeper after the busy insects rendered their outside space too risky for customers to use.
Incredible photos captured by local photographer Andrew Stuart and shared by the cafe show a jaw-dropping mass of the insects congregating beneath a table.
The cafe, on the corner of Dale Street and Tariff Street, was saved by the Manchester Honey Company, who humanely scooped them away to safety.
Idle Hands wrote on Instagram: “So, fun day at the shop today, with thousands of bees moving home and deciding to drop in on our shop and cluster under one of our tables (now forever to be known as the bee table) whilst on their journey.
“Massive thanks to @manchesterhoneycompany for coming and safely taking them away to a far more suitable home. And to @andrewstuart1 for capturing the event so well!”
They had previously posted on their stories: “Erm, anyone know what we do about this??? Swarm of thousands out of nowhere.”
Manchester Honey Company said: “This swarm landed @idlehandscoffee in Manchester and was collected by @manchesterhoneycompany. The bees were so friendly and calm and we were so well looked after by the friendly staff.
“The bees were collected from under a table and put in the hive. The queen was in the hive so the rest of the bees followed her in.”
The incident with Idle Hands is far from the first time that swarms of bees have caused disruption in the city centre.
Hit Christmas market stall opens permanently at Piccadilly Gardens
Georgina Pellant
Crunch Korean Gansig has become a must-try foodie stall at the Manchester Christma Markets, now it’s pulled up at Picadilly Gardens permanently.
The hit Korean hot dog stall has wowed visitors over the past few years with its cheese, potato and meat-filled creations.
Deep-fried in a crispy waffle coating and then lightly rolled in sugar, these sausages on a stick come drizzled in sweet ketchup and mustard.
Incredibly moreish if we do say so ourselves, since first making their appearance at the 2021 Manchester Christmas Markets they’ve consistently been ranked one of the event’s best food traders.
Now, thanks to a new permanent stall popping up where it all began for the team, Manc foodies can enjoy their hot meaty and cheesy Korean goodies all year long.
Popular flavour choices include all-cheese, all-sausage and half-and-half versions, with a vegetarian-friendly cheese-filled version wrapped in a potato waffle coating, and halal-friendly options that are made using separate batter and fryers.
This really is a hot dog stand that caters to everyone. With owners having previously said they would work on a vegan hot dog once they got their own permanent stand, we don’t expect the plant-powered gang will be left waiting too much longer.
Sharing the news to Instagram, the Crunch Korean Gansig team wrote: “Hey guys, we’ve got exciting news to share! We are launching a new market stall in the Piccadilly garden street food market from tomorrow.
“After two years of successful Christmas trading, we are ready to take on a new challenge, and love to serve our hotdogs to you guys again!
“So come on down to the market and say hi, we love to see you there! See you soon!”
Fans of the Korean hot dog stall have responded to the news with enthusiasm, flooding into the comments to share their excitement.
One person wrote: “So excited we will have to go!!”
Another person said: “Nooooo stop!!! I’m so happy I could cry”