Families skipping meals as food prices rise by 14%
THE cost of food has rocketed at the fastest rate since 1980, hammering household budgets already struggling with soaring energy bills and mortgage costs.
Groceries soared by 14.6 per cent in September, official figures revealed yesterday, as a survey said families are missing meals due to the cost-of-living crisis.
Overall inflation surged to 10.1 per cent last month, a figure it touched in July and a rate previously unseen since 1982.
It is more than five times the Government’s target of a two per cent inflation rate.
The blow came as consumer champion Which? revealed the hardship of households skipping meals or finding it hard to put healthy food on the table, with most people having to find ways to save money.
It was also bad news for High Street firms, who now face a £2.7billion tax surge next year.
Business rates, the property tax on all businesses including shops, pubs and hotels, are due to increase in April based on inflation recorded last month.
The rise in grocery prices has been accelerated by the war in Ukraine, which pushed up the cost of fertiliser and animal feed.
Global meat prices have jumped as a result, while the knock-on effect on oil production in the region has also hit the price of sunflower oil. Food and drink prices have also been affected by the weakness in the pound, which means imported products and ingredients are more expensive.
Karen Betts, chief executive of the Food and Drink Federation, said: “Huge rises in ingredient, raw material, energy and other costs mean food and drink manufacturers have no choice but to pass some price rises on.”
Dairy led a basket of everyday grocery price increases, with lowfat milk the fastest rising item costing an extra 42.1 per cent last month compared to 12 months ago.
Butter was up 28 per cent, eggs 22.3 per cent and vegetables and meat were also up with potatoes rising 19.9 per cent, poultry up 17.2 per cent, meat rising by 15.3 per cent, bread by 14.6 per cent, pizza and quiche by 9.7 per cent and fresh fruit by 8.8 per cent.
Which? said its poll found that nine per cent of households were finding it “very difficult” to get by as the price of food rose. Of those,
50 per cent said their household was skipping meals, as did 26 per cent of those who are finding the current situation “quite difficult”.
Almost half of all consumers (46 per cent) said they were finding it harder to eat healthily compared to before the crisis, rising to 78 per cent of those finding it very difficult financially.
The consumer group’s survey found that 85 per cent of people are making an adjustment to save money on food because of the costof-living crisis. Half of respondents said they were trading down to cheaper products.
Even among those who reported living comfortably, 47 per cent said they were taking measures to save money on food.
Sue Davies,Which? head of food policy, said: “The devastating impact of the cost-of-living crisis is, worryingly, leading to millions of people skipping meals or struggling to put healthy meals on the table.
“Supermarkets have a crucial role to play in supporting customers through this very difficult time.”
She said they should make sure “everyone has easy access to budget food ranges that are also healthy, can easily compare the price of products to get best value and that promotions are targeted at supporting people most in need”.
The inflation figure was announced by the Office for National Statistics.
Its director, Darren Morgan, said the rise was driven by food. He added: “These rises were partially offset by continuing falls in the costs of petrol, with airline prices falling by more than usual for this time of year and second-hand car prices also rising less steeply.”
Martin Beck, chief economic adviser to the EY Item Club, said he now “expects the Consumer Price Index (CPI) measure to peak at around 11 per cent this month, followed by a gradual decline”.
He added: “However, the outlook for inflation beyond the next few months has become more uncertain following the new Chancellor’s recent fiscal U-turns.”
The overall business rates bill for firms across England will rise by £2.72billion from next April without government intervention, said experts at Altus Group.
The British Retail Consortium said retailers alone are set for an £800million tax hit next year as a result and Kate Nicholls, of industry group UKHospitality, said the potential rates hike “could prove fatal” for many companies.