FDF response to September Inflation figures

Balwinder Dhoot, Director for Sustainability and Growth, Food and Drink Federation, said:

“We’re pleased to see that food and drink price inflation remains steady, reflecting the ongoing stabilisation of production costs across the supply chain. However, while recent economic and policy volatility has eased, investment in our sector is key to ensuring it can continue to prosper and grow. By putting the food and drink industry at the heart of its industrial strategy, government can strengthen the nation’s food security, boost investment, and support more jobs.

“Furthermore, with export volumes down 20% in the first quarter of 2024 and recent import regulations creating administrative barriers, it’s vital that government prioritises easing the bureaucratic burden and cutting unnecessary costs and processes in order to strengthen the relationship with our largest trading partner, the EU.”

Background

1. Annual food and non-alcoholic drink inflation eased to 1.3% in August, down from 1.5% in July. This is the lowest inflation rate since September 2021.
2. There is a mixed picture for individual categories. 21 out of the 49 categories reported by the Office for National Statistics were in deflationary territory in August, while inflation was below 5.0% for 19 categories. Price fell the fastest for ‘jams and marmalades’ and ‘cheese and curd’ by 5.9% and 4.7%, respectively, while olive oil, ‘cocoa and powdered chocolate’ and ‘lamb and goat’ recorded the highest rises at 40.8%, 19.9% and 13.8%, respectively.
3. Export values were down 20% in Q1 H1 2024 compared to the same period in 2023.