Food inflation to last longer than predicted, says IGD report
By Michelle Perrett, Food Manufacture (UK)
Food inflation is expected to last for much longer than initially predicted, according to grocery think tank IGD’s latest Viewpoint Special Report 'Exploring the outlook for food inflation'.
The report states the rising cost of essential food items is likely to peak at up to 15% this summer as the UK economy faces its strongest period of inflationary pressure since the 1970s.
The prediction was made as The Bank of England raised interest rates to 1.25% and said it would be alert to indications of more persistent inflationary pressures, and would if necessary 'act forcefully' in response.
IGD expects food inflation to persist for longer than official forecasters due to several factors, including the impact of the war in Ukraine, pre-existing supply chain challenges and the limited effectiveness of monetary and fiscal policy.
Cost increases ...
Skipping meals ...