The Food and Drink Federation responds to ONS inflation figures for January 2022

Chief Executive of the Food and Drink Federation Karen Betts said:

“Today's continuing rise in the price of everyday food and drink is worrying - particularly for lower income households. Food and drink manufacturers are working hard to keep prices down but are being hit hard by rising energy, ingredient and logistics costs, which for the moment show no signs of abating, alongside dealing with acute labour shortages. 

“It's becoming increasingly difficult for companies - large and small - to remain competitive and upcoming regulation is compounding the situation. This puts a premium on good collaboration between government and industry to guarantee that planned regulation is successful and does not place unnecessary burdens on businesses at an already challenging time.”

Additional information:

• Today’s food and non-alcoholic drink price rise of 4.3% is the largest in nearly 10 years. Annual food and non-alcoholic drink inflation accelerated to 4.3% in January from 4.2% in December. This is the largest increase since September 2013. However, it runs below headline inflation of 5.5%.
• All food and drink categories are more expensive than a year ago: prices of oils and fats are 15.9% higher, of fruit by 6.9%, and of coffee, tea and cocoa by 4.9%.
• Manufacturers are working hard to avoid passing these increases in costs on to consumers through greater efficiency, forward buying and the use of hedging arrangements to protect against currency shifts.
• In the FDF’s Food Prices Report published in July 2021, it was predicted that additional costs to industry from UK Government regulation will lead to an annual increase of food and drink shopping per household of £160. That increase will prove even higher at current inflation rates.
• In 2020, the poorest 10% of UK households spent 14% of their disposable income on food and non-alcoholic beverages, in contrast to 11% for the average UK household and 8% for the richest 10% of households.

For information, please contact press.office@fdf.org.uk 020 7836 2460.