UK Food Price Inflation Drives Christmas Dinner Cost Up Nearly 10%

YEREVAN (CoinChapter.com) – Office of National Statistics estimated the food price inflation in the UK at 16.4% in October, which includes groceries and non-alcoholic beverages. With Christmas dinner just around the corner, many consumers could find it increasingly difficult to keep up.

UK Food price inflation 2022

While November inflation data is expected no sooner than Dec 18, the October results stood at a 1.8% increase since September.

The annual rate of inflation for this category has continued to rise for the last 15 consecutive months, from negative 0.6% in July 2021. The current rate is estimated to be the highest since September 1977, when the food and non-alcoholic beverages annual inflation rate was 17.6%.

noted the report.

Discount Grocery Stores Offset Christmas Inflation

Sources report a “strong growth” of discount grocery stores in the UK over the latest 12 weeks. Popular stores ‘Aldi’ and ‘Lidl’ opened new stores across Britain as consumers turned to more affordable grocery options.

Fraser McKevitt, head of retail and consumer insight at research company Kantar, pointed out the impact of rising prices at cash registers across Britain.

Grocery inflation still has a long way to come down, though, and based on the current rate, shoppers will have to spend an extra £60 in December to buy the same items as last year. The cost of a traditional Christmas dinner for four has hit £31 in 2022.

said McKevitt.

The expert also pointed out that consumers strive to cut corners, preferring in-store brands to more expensive options.

We’re expecting Friday, 23 December, to be the busiest day for pre-Christmas shopping. […] The cheapest value own-label lines have soared by 46.3%, but people still want to find room for treats at this time of year and this is driving growth at the other end of the spectrum too. Premium own-label sales are up by 6.1% to £461 million in November.

added McKevitt.

Meanwhile, food inflation in the United Kingdom and other European countries could be traced to several key factors. Food shortage and energy crisis are the two main pillars behind the grocery basket price increase. So here is a short rundown:

The Energy Crisis Exacerbated Food Inflation

CoinChapter reported that Europe faced a severe energy shortage after Kremlin invaded Ukraine. The EU sanctioned the aggressor but was unprepared for the backlash, given its dependency on Russian energy resources.

As a result, Putin shut the gas pipes, exacerbating the strain on the European taxpayers, who faced a tenfold increase in their bills. Peter Mandelson, the former EU trade commissioner and UK business secretary noted the importance of a collective response from Europe to tackle the energy crunch.

However, the European leaders agreed to cap the energy prices when they get “excessive” without clarifying what defines “excessive.”

Meanwhile, the soaring energy prices made it more expensive to deliver groceries to consumers. Thus, the average cost of Christmas dinner soared alongside oil and gas prices. Moreover, as noted above, the UK food rate also heavily depends on possible agricultural shortages underway.”Three f-s” of agriculture: fuel, feed, and fertilizer risk tanking food supplies; here’s why:

UK risks “sleepwalking” into a food supply crisis.

As per the Guardian, UK’s National Farmers Union (NFU) warned the government of possible food shortages if the lawmakers don’t “act fast.” The government responded that the UK has a “highly resilient food supply chain.” However, the NFU was not convinced.

The farmers said yields of energy-intensive crops like tomatoes, cucumbers, and pears were likely to hit their lowest level this year since records began in 1985. They also warned milk prices were likely to fall below the cost of production, while beef farmers were considering reducing the number of cows they breed.

Also read: Big relief for people in USA and Europe as gas prices fall.

Admittedly, fuel prices have fallen in the previous month. However, some estimations don’t see them reduced to 2021 levels for several years.

Furthermore, the damage to the food industry might still be lasting. Thus, Christmas dinner or not, more and more consumers try to cut corners as UK food price inflation hits their wallets.

Click here to keep up with the ever-changing crypto market and never miss the scoop!