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
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Award-winning cocktail bar in Manchester announces shock closure
Daisy Jackson
Red Light, a Manchester cocktail bar that’s been named as one of the best in the UK, has announced its shock closure.
The beautiful bar on the cobbled Little David Street has said that ‘this Pride will be our last’, with the doors set to close for good on Sunday.
Red Light opened its doors at Kampus in 2023, an inclusive space with great drinks, events, and DJs.
The bar was the brainchild of Deana Ferguson, an adopted Manc originally hailing from Belfast, who created a cosy, welcoming space with a fantastic martini.
But now, the Red Light team have announced that they have just days remaining in their home.
They wrote that ‘sustained financial headwinds’ are partly to blame, along with the challenges presented by operating a late-night venue in a residential area.
Red Light in Manchester has announced its closureThe beautiful bar is on Little David Street at Kampus in Manchester
In a heartbreaking statement, Red Light wrote: “For so many years, this bar has been more than a place to drink. It has been a home, a dance floor, a refuge, and a place where people could find friendship, freedom, love, and themselves.
“We are immensely proud of the community that has grown within these walls, and grateful to every person who has been part of it.”
The statement went on to thank the DJs, performers, neighbours and friends who ‘made this bar what it was’.
Red Light added: “We want our final Pride to celebrate everything we have created together. Come raise a glass, fill the dance floor, and help us give this place the joyful, unapologetically queer farewell it deserves.
“We hope to see you over the weekend, for one last Pride together.”
Viral Manchester doughnut window serving ‘spaghetti ice cream’ to close down
Daisy Jackson
Baby Mayhem, a dessert hatch in Ancoats serving fluffy filled doughnuts, has announced it’s closed for good.
The brand shot to fame with its baked-fresh-daily treats, which customers could have topped with ‘spaghetti ice cream’ and cheesecake filling.
For a year and a half, they’ve had consistent queues for their doughnut ice cream sandwiches and coffees, and become one of the most viral traders in Greater Manchester.
But now Baby Mayhem’s doughnut window in Ancoats is closing for good, with its founder James Turner citing a rise in rent and ongoing building works among the reasons for its closure.
He said that it’s become ‘increasingly difficult’ to operate the site, with the wider building undergoing construction work, telling followers that he’s only been able to open seven days out of the last eight weeks.
He’s also said that there is a ‘proposed increased rent’ looming, forcing him to close the Ancoats hatch for good.
But it’s not the end of Baby Mayhem as a brand, with a unit outside the Etihad Stadium, pop-ups planned at the Joie stadium, another term at Manchester Metropolitan university, and more appearances around town.
He also dropped a hint at a certain Christmas Market…
James will close the Baby Mayhem doughnut window in AncoatsBaby Mayhem’s fluffy doughnutsCredit: The Manc Group
In a statement, James said: “After an incredible year and a half, we’ve made the really difficult decision to close the Baby Mayhem hatch – for now.
“Over the past few months, ongoing building works have left much of the site under construction, making it increasingly difficult for us to operate consistently. We’ve only managed to open seven days in the last 8 weeks.
“The works have also had a huge impact on our kitchen, making it impossible to create our desserts to the standard we expect from Baby Mayhem. Alongside the disruption and proposed increased rent, continuing to operate from the hatch simply isn’t sustainable right now.
“But one thing is certain – this is not the end of Baby Mayhem.
“Over the last 18 months, we’ve been lucky enough to build a wonderful relationship with Manchester City FC and that’s something we’re incredibly proud of. That relationship continues to grow, with our unit outside the stadium, we will have pop ups at the Joie stadium for all the WSL home games, and also popping up at Kids Fanzone at every Manchester City home game.
“We’ll also be back at Man Met for another term of Baby Mayhem Burger, with more pop-ups around the city, a few festivals still to come and of course, we love a Christmas market.
“Sometimes in business you have to take one step back to take two steps forward.
“For now, the hatch is closing – but Baby Mayhem isn’t. To everyone who has supported us over the last year and a half, thank you.
Georgina Pellant -
23rd May 2023 
