Eating into household budgets: the Government’s recipe for food price inflation

20 July 2021

The report looks at the impact on industry and consumer food prices of seven different policies coming from either the sustainability or public health policy arenas. 


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It argues that food and drink manufacturers have been absorbing rising commodity prices for years, while ensuring that consumer prices are being kept down. This, combined with the prolonged effects of the Covid-19 pandemic and lower exports due to Brexit, is leaving the sector with squeezed producers’ margins. For this reason, the additional costs to industry from Government policies will likely be passed to consumers, leading to an annual increase of food and drink shopping per household of £160.

Our industry wants to see a fit and healthy nation, but we believe that the policy proposals analysed are not well-targeted and will lead to unnecessary costs for households.