The cost of your Christmas hamper is set to soar

SHOPPERS across Scotland are facing a hefty Christmas hamper price hike due to a perfect storm of Brexit, supply shortages and changes in the law.

Some of Scotland’s biggest food and drinks brands say price rises will be unavoidable in the run-up to Christmas.

It’s feared a swathe of popular goods such as cheese, meat, booze, potatoes and chocolate will be affected.

The unwelcome news comes as the spectre of inflation – largely absent from the Scottish and UK economies in recent years – looms large.

Shops have been trying to absorb the cost to consumers through aggressive negotiations with their suppliers. However, as problems continue, industry leaders have warned a rise in the cost of the weekly shop is inevitable.

Ian Wright, director general of the Food and Drink Federation, predicts that food prices could rise by around 5% in the next year.

He said: “Three-quarters of producers responding to our survey told us they’re seeing ingredient import costs rise. In some instances, the weaker pound has increased exports of UK raw materials creating domestic scarcity.

“If these price hikes persist, as companies believe they will, there are three pretty undesirable possible outcomes: retailers put up prices, manufacturers and or retailers take the hit, or consumers lose choice.”

Mr Wright believes the biggest impact will be on goods that are wholly imported or rely on imported ingredients.

That’s bad news for shoppers, given 27% of all food eaten in the UK was imported from the EU last year.

Imports include tomatoes, cucumbers, lettuce and olive oil.

It also raises the prospect of price hikes in Christmas tipples such as Champagne, Prosecco and port.

David Lonsdale, of the Scottish Retail Consortium, said inflationary pressure had been building through the recent devaluation of the pound.

The organisation has warned inflation could rise to as much as 3% by the end of next year.

Mr Lonsdale said: “However, years of falling shop prices and higher Government-imposed costs have left limited scope for retailers to continue absorbing this pressure, and everyone in the supply chain will need to play their part in maintaining low prices for consumers.”

Meanwhile, the National Farmers Union in Scotland has said rock-bottom milk prices have forced many dairy farmers to abandon their herds, leading to a drop in the milk production.