Retail experts have warned of further food price hikes, with the cost of butter rising 60% this year – producer prices for staples like milk, barley and pork are up a fifth by the end of March
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The cost of living crisis will lead to a sharp rise in food poverty, families have been warned.
That’s according to retail analysts at Peel Hunt, who are predicting grocery inflation could top 10% this year.
Data from Kantar showed that food prices rose 5.2% in March, with cost hikes already hitting consumers.
Producer prices for staples like milk, barley and pork rose by a fifth by the end of March.
The cost of wheat and cooking oil have also skyrocketed because of the war in Ukraine – but experts say more increases are on the way.
Butter could be up 60% by the end of the year, they said.
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“The 30-year improvement in living standards due to stable and falling food prices is reversing,” said Charles Hall of Peel Hunt.
“Food inflation rose 5.2% in March but will rise sharply as the effects of the war are felt.”
Mr Hall added: “It may be painful in the UK, but that’s nothing compared to the rise in the cost of living in a number of countries, particularly those with high levels of imports from Russia and Ukraine.”
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Lindsay Boswell, of food charity FareShare, said: “Many families are now experiencing additional difficulties.
“We are calling for more support for those struggling to feed themselves and more food donations from across the food industry.”
The Peel Hunt report also found that palm oil prices have increased by 75% and coconut oil by 30%.
Cotton prices are up 130% year-on-year.
Fuel, energy and travel costs have also risen steadily in recent months.
It was confirmed today that the Consumer Price Index (CPI) inflation rate hit a new 30-year high in March, hitting 7%, up from 6.2% in February.
This was again the highest level since March 1992 when inflation was 7.1%.
The rise was higher than the 6.7% analysts had been expecting and was driven by fuel, restaurant and food prices.
But the increase doesn’t take into account the average 54% hike in energy bills applied to around 22 million homes two weeks ago.
This will not appear in the inflation figures until next month.
The April data is expected to show a further increase in inflation and demonstrate the increasing pressure on ordinary people.
The Bank of England has forecast that inflation could peak at around 8% in April, factoring in the hike in the energy price ceiling.
Inflation is the rate at which the prices of goods and services are increasing.
https://www.mirror.co.uk/money/families-warned-spike-food-poverty-26706399 Families warned of a rise in food poverty as the price of butter rises by 60%