Food bills set to surge by £500 a year

Amid fears of double-digit grocery inflation...

THE cost of putting meals on the table is set to rise by more than £500 a year, industry experts have warned.

The spiralling price of key ingredients and animal feed mean some traditional meals, such as a roast chicken dinner, could surge by as much as 17 per cent.

Many low-income households are cutting back on food spending and skipping meals amid the biggest cost of living squeeze since the 1950s, and it seems the situation is likely to get worse.

The warning comes from experts at the Industry for Grocery Distribution (IGD), who said high food inflation is likely to continue into the middle of next year.

Grocery price inflation hit 7 per cent over the four weeks to May 15 – the highest level in 13 years. The IGD predicts it will rise to an average of 10.9 per cent and could peak at 15 per cent.

A rate of 10.9 per cent would see the average monthly spend on groceries for a typical family of four reach £439 in January 2023, up from £396 in January 2022. This increase amounts to an extra £43 a month or £516 a year.

The IGD expects inflation to be most evident in prices for meat, cereal products, dairy, fruit and vegetables, with products that rely on wheat for feed, such as chicken and pork, likely to see prices soar in the short term.

It said: ‘Key items impacted in the medium term are those directly (bread, flours) and indirectly (meat) derived from grain. European cuisine is skewed towards these commodities and traditional meals are likely to rise in price the fastest.

‘For example, IGD expects a roast chicken dinner, including potatoes and vegetables, to cost an additional 17 per cent by the end of 2022.’

It suggested the meal, including vegetables, Yorkshire puddings and an apple crumble for dessert, would rise to more than £2 a head.

IGD chief economist James Walton said: ‘We’re unlikely to see the cost of living pressures easing any time soon.

‘This will undoubtedly leave many households – and the businesses serving them – looking to the future with considerable anxiety. We are already seeing households skipping meals – a clear indictor of food stress.

‘We expect the mood of shoppers to remain bleak for the foreseeable future as they are impacted by rising inflation and a decline in real wages. Shoppers are likely to dial up money- saving tactics as far as possible.’

In response to the crisis, Britons are trading down in both stores and products, switching from mainstream supermarkets to discounters and from branded to lowerpriced products.

The IGD added: ‘The UK is a net- food importer, with around 40 per cent of its food produced elsewhere, exposing it to global food price rises and supply shocks.’

‘The mood will stay bleak’