Inflationary pressure on meat products expected this summer
The Institute of Grocery Distribution (IGD) has predicted that food inflation is likely to reach 15% this summer, with the strongest inflation pressure expected to come from household staples, including meat.
In addition to meat, cereal products, dairy, fruit and vegetables are amongst other foodstuffs expected to experience price rises because of inflation. Products that rely on wheat for feed, such as white meats, are likely to see prices rise significantly in the short term.
The latest report from the IGD has found that food inflation is set to hit its highest level in more than 20 years.
The average monthly spend on groceries for a typical family of four will reach £439 from January 2023 – a significant increase from £396 in January 2022.
James Walton, chief economist, IGD, said: “We expect the mood of shoppers to remain bleak for the foreseeable future as they are impacted by rising inflation and a decline in real wages. Shoppers are likely to dial up money-saving tactics as far as possible.”
IGD warned that the UK economy is facing its strongest period of inflationary pressure since the 1970s. It also expects food inflation to persist for longer than official forecasters predict due to several factors, including the impact of the war in Ukraine, pre-existing supply chain challenges and what it describes as “the limited effectiveness” of monetary and fiscal policy.
IGD predicts that the acceleration in food inflation is likely to last until mid-2023. The report also highlights the predicted rate of inflation is likely to push the economy into recession or, at least, into stagflation.
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