Pork inflation at 27.2% amid cost pressures
According to the FDF’s State of Industry report, pork inflation is currently at 27.2%.
The report suggests that food inflation has peaked – the rate of inflation is expected to slow for the remainder of 2023, with cost pressures in the industry beginning to subside.
Though the rate has slowed, costs remain significantly higher than a year ago and have not started to decline. Food manufacturing output for meat and meat products is 1% higher than it was in Q4 2022 and 2.8% higher than it was in Q1 2022.
Food and drink manufacturers continue to minimise the impact of the price increases on consumers by reducing production and halting recruitment, keeping costs low enough to accommodate the reduced prices in retailers.
The report also notes that these cost-saving measures are likely to have negative long-term impact on productivity and jobs for the wider economy.
Creating a stable business environment
FDF director for growth Balwinder Dhoot said: “Building a sustainable and resilient food supply chain which supports the economy requires sustained investment to drive technological advancements and innovation. If the Government can create a stable and positive business environment, the UK’s largest manufacturing sector, is ready to play its part in driving the productivity growth that our country needs.”
In spite of soaring prices and global inflation, the FDF report shows business confidence is starting to move in a more positive direction, with 84% of respondents anticipating that production levels will maintain or increase over the next year.