FDF Cymru responds to ONS inflation figures for January 2022

Pete Robertson, Chief Executive, FDF Cymru, said:

“Today's news on rising prices is a concern for consumers in Wales, and the outlook indicates these are structural cost adjustments for the medium term. Food and drink manufacturers are working tirelessly to minimise costs, however the range of drivers of cost price inflation are impossible to absorb. Tackling any new challenges at this time would be an unfair burden on a sector that has proved its resilience over the last few years. 

“Government collaboration with industry would be welcomed to focus on unlocking investment that, albeit in the medium term, would deliver improved competitiveness through transition in levels of productivity, and harness innovation in new and emerging technologies.”

Additional information:

• Today’s food and non-alcoholic drink price rise of 4.3% is the largest in nearly 10 years. Annual food and non-alcoholic drink inflation accelerated to 4.3% in January from 4.2% in December. This is the largest increase since September 2013. However, it runs below headline inflation of 5.5%.
• All food and drink categories are more expensive than a year ago: prices of oils and fats are 15.9% higher, of fruit by 6.9%, and of coffee, tea and cocoa by 4.9%.
• Manufacturers are working hard to avoid passing these increases in costs on to consumers through greater efficiency, forward buying and the use of hedging arrangements to protect against currency shifts.
• In the FDF’s Food Prices Report published in July 2021, it was predicted that additional costs to industry from UK Government regulation will lead to an annual increase of food and drink shopping per household of £160. That increase will prove even higher at current inflation rates.
• In 2020, the poorest 10% of UK households spent 14% of their disposable income on food and non-alcoholic beverages, in contrast to 11% for the average UK household and 8% for the richest 10% of households.

Read further analysis on food prices rises and the largest increase in food and drink inflation since September 2013.