- There has been a significant increase in food prices, and it appears that the worst of the growing expenses of food has arrived.
- Food inflation reached its lowest point since April 2022 in March, dropping from 5% in February to 3.7%.
- Tesco declared that the pressure on grocery stores to lower prices has subsided, resulting in a drop in food costs.
Over the last two years, there has been a significant increase in food prices, and it appears that the worst of the growing expenses of food has arrived. The Russian invasion of Ukraine, problems with the global supply chain following the COVID-19 outbreak, and rising labor expenses are just a few of the factors driving up food prices.
Food inflation reached its lowest point since April 2022 in March, dropping from 5% in February to 3.7%, according to data from the British Retail Consortium (BRC).
Food Inflation
Food price increases have been somewhat mitigated by declining costs for staples like sugar, jam, and chocolate as stores have banded together to offer customers some “cracking deals.”
Falling prices have also been fueled by competition among supermarkets, who have boosted foot traffic to their establishments with Mother’s Day and Easter promotions and discounts.
According to the Office of National Statistics (ONS), the rate of increase in food costs has decreased, with prices for food and non-alcoholic beverages rising by 7% in the year ending in January. The largest decline in annual prices in this category since May 2021 was primarily caused by bread and cereals in January.
But between January 2022 and January of this year, the cost of food increased by around 25% overall, underscoring the detrimental effects of growing food prices.
The Bank of England stated that inflation could drop below its 2% target in the spring before increasing again, but most economists predict that total inflation will continue to decline from its current level of 3.4%.
Tesco declared that the pressure on grocery stores to lower prices has subsided, resulting in a drop in food costs. According to the Institute of Grocery Distribution (IGD), food inflation will range from 1.9% to 3.9% on average this year; prices will rise, but more slowly than what the ONS reported in the months of January and December.
