FDF Response to February food and drink inflation figures

Balwinder Dhoot, Director of Industry Growth and Sustainability, FDF said:

“As high levels of food and drink inflation continue, the pressure on businesses shows no sign of easing. Manufacturers are grappling with rising energy and commodities prices, alongside the impact of looming government policies, such as rising Employer’s National Insurance Contributions and the upcoming EPR packaging tax. In short, doing business in the UK is becoming increasingly expensive. As food and drink manufacturers continue to work hard to minimise price rises for consumers, we hope to see the Chancellor make bold decisions in her Spring Statement this afternoon to bring business costs down, help curb this concerning inflationary trend and revive growth. However, even in a difficult context, government and industry can partner to reverse this trend. With our new growth plan, we’ve set out 40 clear actions government can take to remove unnecessary roadblocks for manufacturers. These will help reduce prices and lay the foundations to make the UK the most competitive and dynamic food and drink sector in Europe.”

Background

• Food and non-alcoholic drink inflation was steady in February at 3.3% year-on-year. On the month, prices rose by 0.2%.
• Prices rose at the fastest pace for butter (18.7%), chocolate (16.5%) and lamb and goat products (15.6%).
• Prices fell the fastest for: pasta and couscous (-5.3%), frozen seafood (-3.4%), and rice (-3.1%).