Response to ONS food and drink inflation figures
16 August 2023
"It’s encouraging to see food and drink price inflation falling again this month to 14.9% from its peak in March."
- Business insights & economics
A spokesperson for the FDF said:
"It’s encouraging to see food and drink price inflation falling again this month to 14.9% from its peak in March. We expect the rate of food and drink price inflation will continue to fall over the coming months, offering households some relief from the rapidly rising prices of recent months. However, after three years of cost increases in all elements of the production process, high ingredient costs, labour shortages continue to have a significant impact on the cost of food production in the UK.
"Food manufacturers are doing all they can to keep prices rises to a minimum, making savings wherever possible, while paying a fair price to their suppliers. But the impact on our sector is clear, with insolvencies on the rise particularly among smaller businesses, investments paused and vacancies running much higher than any other manufacturing sector - all of which is having a negative impact on future growth.
"Government needs to continue to work with us to mitigate these issues, simplify and revisit forthcoming regulation on borders, labelling and recycling, to help reduce unnecessary cost burdens for businesses, and create conditions for growth."
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