FDF Responds to Feb 2024 inflation figures

David Thomson, Food and Drink Federation Scotland’s Chief Executive Officer, said:

“It’s encouraging to see a decline in food and drink inflation to 7.0 per cent in January. Any reduction is important to households struggling to afford higher food bills, and for business who are paying higher salaries at a time when they are continuing to streamline production costs to deliver competitive prices for shoppers.

“Unpredictable weather patterns persistently impact agricultural yields. Ongoing navigation challenges in the Red Sea, coupled with rising shipping costs, may soon exert pressure on energy prices, and, therefore, on food prices, given the energy-intensive nature of the food and drink industry. The extent of this impact hinges on the duration of ship diversions from the Suez Canal and any escalations in the Middle East.

“To support food and drink manufacturers and help hard pressed shoppers, the UK and Scottish governments must not place additional burdens on businesses. The UK Government must urgently reassess costly ‘not for EU’ labelling requirements for food sold in Great Britain.”

Background

The decrease isn’t consistent across all goods. While we have seen prices fall for whole milk and butter by 10.0 and 7.8 per cent respectively. Olive oil is up by 38.2 per cent, cocoa and powdered chocolate has risen by 25.1 per cent and sugar is up by 18.0 per cent.