#food-inflation

#food-inflation

The latest figures from the Office for National Statistics (ONS) show inflation slipping from 3.8% in September, though the fall was not as sharp as economists had forecast. The reduction strengthens hopes that price pressures have peaked and could pave the way for future interest rate cuts, even as inflation remains above the Bank of England's 2% target.

Karen Betts, Chief Executive of the Food & Drink Federation (FDF) said there is a shift in shoppers habits as people are tightening their belts and are not continuing with their normal festive shopping habits. Betts told the i, "I think what we're seeing... is that where people are buying those items now, they tend to be within their same basket spend, so not as an add-on to a basket that they would otherwise have bought."

The 20th century was full of unique dinners that once ruled home kitchens, only to be discarded into the compost pile of history. Ham-wrapped bananas and Jell-O salads have certainly rightfully "earned" their place as retro dishes we're glad disappeared, but some old dishes really did have positive attributes. In fact, some of these dishes have since been remembered through a nostalgic haze, with the hottest retro dish in the country currently being Hamburger Helper.

If you've set foot in a supermarket in Germany in the past couple of weeks, you'll have seen shelves stacked with Christmas sweets and seasonal treats like chocolate Santa Clauses and packets of gingerbread cookies (Lebkuchen) in various shapes and sizes. In Germany, these seasonal foods tend to hit shelves well ahead of the advent, often even before Halloween, to give shoppers plenty of time to stock up ahead of the holiday festivities.

There will be some delayed spending until all of the news of the next few weeks comes through.

More than half of British diners say rising prices are the main reason they are eating out less, according to YouGov data showing that overall 38% of people are visiting restaurants and other eateries less often than a year ago. Among those cutting back, 63% cite higher costs as the main reason to dine out less frequently, according to the poll.

Headline CPI inflation held at 3.8% in September, a pace unchanged since July, in line with Cebr's forecasts. Overall, the picture for UK households is mixed. Food inflation slowed for the first time since March, from 5.1% to 4.5%, but prices for electricity, gas, and other fuels continued to rise, accelerating to 9.4% in September. Divergent price pressures place the Bank of England at a crossroads.

Following last year's Budget, where retailers were hit with £5 billion in extra employment costs due to higher employer National Insurance and rising National Living Wages, the industry has been left with little room to absorb additional costs. With EPR set to cost industry billions, this new tax will be yet another inflationary pressure, at a time when food prices are already rising fast, with The Bank of England estimating that the policy alone will add 0.5% to food inflation.

"It was crazy but pretty cool," said co-owner Jim Angelopoulos. "It's nice to see a long line around the block."

According to the British Retail Consortium (BRC)-NIQ Shop Price Monitor, food prices have soared to their highest pace in 18-months as the price of eggs, butter and chocolate surges, this is the highest seen since February 2024. The rapid acceleration in price hikes will "add pressure" to households who are already struggling to make ends meet. In the month food inflation jumped to 4.1% as dairy prices are rising which is up from 3.2% in July.