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
Lavish Spanish restaurant backed by Pep Guardiola announces shock closure
Daisy Jackson
Tast, the luxury Spanish restaurant in Manchester that was launched with the backing of Pep Guardiola, has announced its sudden closure.
The beautiful restaurant in King Street, led by acclaimed executive chef Paco Pérez, said that it’s taken the ‘difficult decision’ to close the doors for the ‘very last time’ this week.
Tast opened back in the summer of 2018, taking over the site that was previously home to restaurants like Quill and Suri.
It had a much better run of things than those previous occupiers, thanks to its menu of Catalan-style rice dishes and traditional but refined tapas.
Sadly, Tast Cuina Catalana has now decided that it’s reached the end of the road, and will be closing its doors for good on Saturday 20 December.
They cited a number of factors leading to the closure, including ‘exceptionally challenging trading conditions’ and ‘increased costs’, stressing that the restaurant’s ‘shareholders and the dedication of our team’ have seen the restaurant through the last seven years.
Tast wrote in a statement: “We are proud to have been able to share some of Catalunya, our beloved country, with the people of Manchester.
Tast will close for good on 20 DecemberTast on King Street launched in 2018 with backing from Pep Guardiola
“Between now and our final service on 20 December, we look forward to welcoming you and celebrating what Tast has always been about: great food, great people and memorable moments shared around the table.”
Other restaurant owners in Manchester have been sharing their messages of support with Tast, including Beeswing, who wrote: “This is so sad to read. Such lovely food and thoughtful service — a real reflection of how hard things are for hospitality right now. Manchester will miss you.”
Mary-Ellen McTague, the renowned chef at Pip, said: “Really sad news! Sorry to hear it.”
Tasts’s full statement reads: “After much consideration, we have made the difficult decision to close Tast’s doors for the very last time on 20 December 2025.
“Tast has been built on the passion, talent and commitment of an exceptional team, and we want to begin by thanking every single person who has worked with us over the years. Your creativity, care and professionalism have been the heart of Tast.
“To our loyal customers: thank you for choosing to dine with us, celebrate with us and support us. Your belief in Tast has kept us alive for seven years and it has been a privilege to welcome you through our doors.
“We would also like to extend our sincere thanks to our suppliers, producers and partners. Your quality, reliability and collaboration have played a vital role in shaping what Tast stands for.
“Like many in the hospitality sector, we have faced exceptionally challenging trading conditions and increased costs. But the unwavering support of our shareholders and the dedication of our team have seen us through these past seven years.
“Above all, we are proud to have been able to share some of Catalunya, our beloved country, with the people of Manchester.
“Between now and our final service on 20 December, we look forward to welcoming you and celebrating what Tast has always been about: great food, great people and memorable moments shared around the table.
“Thank you for being part of our journey. With gratitude, Tast Team.”
Anyone with vouchers to dine at Tast will be automatically refunded if they can’t be spent in the next few days.
Tast will officially close on Saturday 20 December.
Inside Mollie’s Motel and Diner in Manchester as beautiful new hotel opens with rooms from just £109
Daisy Jackson
Mollie’s Motel & Diner has arrived in Manchester, with beautiful hotel rooms from just £109 plus a retro diner serving American classics.
The space has taken over five floors of the iconic Old Granada Studios down at St John’s, with interior design that celebrates the building’s history.
Mid-century modern details like dark woods, textured upholstery, and retro lamps abound in this stylish new opening for Manchester.
Soho House Design has worked on the build of Mollie’s Motel to preserve the modernist facade of Old Granada Studios and make playful nods to the building’s vibrant history.
This is particularly obvious downstairs in Studio IV, a cocktail bar with a live music stage, where vintage TVs have been inserted over the bar and guests sink into plush couches for pre-dinner drinks.
You can already check out Mollie’s Diner, which is open now (with a decent discount for its launch – more on that below), with the Mollie’s Motel bedrooms set to launch early 2026.
The hotel rooms at Mollie’s Motel Manchester
A bunk room at Mollie’s Motel ManchesterA Mollie’s Motel suiteAnd a tub with a viewThe bedrooms are all beautifully designed
Hotel rooms at Mollie’s Manchester start from an incredibly reasonable £109, with different size and spec bedrooms and suites for guests.
There are cosy bunk rooms where up to four guests can tuck into their own bunk pods, suites that have their own Peleton room, and cosy double bedrooms with gorgeous views of the southern side of the city.
Regardless of the level (or price) of your chosen room, you’ll have the same design detailing (dark wood panelling, terrazzo and aged brass finishes), plus rainshowers, a super king bed, Dyson hairdryers, GHD straighteners and Cowshed toiletries.
Mollie’s Diner in Manchester
Mollie’s Diner is open nowBreakfast dishes at Mollie’s DinerBurgers and fried chicken at Mollie’s DinerClassic thick milkshakes
The diner space itself looks like it’s been lifted straight out of Hollywood’s Golden Age, with deep burgundy leather banquettes, counter seating, and globe pendant lights.
It’s all been inspired by the interior of a vintage Cadillac, and has space to 110 diners plus private dining for 30.
As for food and drink, you can expect everything from waffles and French toast to huge burgers and steaks, with thick milkshakes to wash it down.
You can get 50% off food if you book Mollie’s Diner HERE.
The rest of the spaces in Mollie’s Motel & Diner, Manchester
Studio IV cocktail barStudio IV cocktail barThe library snug
As you enter this reimagined building, you’re plunged straight into its design-led vision, with couches and cosy corners everywhere.
The communal reception space has a library snug, coffee counter, and beautiful bar, but you head downstairs you’ll find the real treat – Studio IV.
This beautiful bar is built around a magnificent central bar, with retro TV screens above it and scalloped leather bar stools surrounding it.
There’s a mid-century-era stage, too, which will host live entertainment to a crowd gathered on couches before it.
You can get 25% off signature cocktails in Studio IV if you pre-book HERE.
Georgina Pellant -
23rd May 2023 
