UK set for 5% food price hike following extreme weather

Meat, vegetable and dairy prices are set to increase by round 5% following this year’s extreme weather, according to new research.

The centre for economics and business research (CEBR) has found that wholesale prices have already felt the effects.

Vegetables have particularly suffered, with farm gate prices from March to July increasing by 41% for onions, 80% for carrots, 61% for lettuce and 28% for strawberries.

Dairy production has also suffered, registering 11 consecutive weekly falls as the hot weather hampered grass growth.

The heat also reduced the fertility of pigs which has consequently led to an 8% rise in piglet prices since March.

Despite this, the price of red meat is set to fall marginally short term, as farmers look to sell livestock earlier than normal to reduce the burden on grazing land.

However, prices are set to rise in the long run with feed availability being affected by a weak harvest.

The report goes on to use Department for Food and Rural Affairs (DEFRA) data to highlight how the rise could cost consumers an extra £45m per week, equivalent to £7.15 extra per household.

The DEFRA research suggests that commodity price spikes can take 18 months to fully feed through into inflation, meaning although the extreme weather might be coming to an end, the UK is still feeling the effects.

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