Cost of living crisis: food prices on the rise | East Anglian Daily Times

2022-09-02 23:30:29 By : Ms. Aileen AI

Experts explain why the price of food is rising so much - Credit: PA/Martyn James/CP Transport

Food prices across the UK have risen at the fastest rate since the 2008 financial crash. 

Data from the British Retail Consortium (BRC) and NielsenIQ said costs were up 9.3% after a 7% increase last month.

Fresh food prices were also 10.5% higher than last August, up from the 8% annual rise recorded in July.

Everyday items such as milk and margarine have risen the most.

"Some of the price increases are linked to political events such as the war in Ukraine or Brexit", said consumer rights expert Martyn Jones.

Consumer rights expert and head of media at Resolver, Martyn Jones - Credit: Martyn James

"We don't necessarily import a huge amount from Ukraine but a lot of other countries do.

"Those countries take the raw materials and use them to make a whole range of things that we then import.

"So as soon as supply goes down, the price goes up.

"This increases the cost, things ranging from supermarket own labels to the big brands.

"But other factors also come into the mix, such as the aftermath of the pandemic where production ground to a halt or stopped in many areas for two years.

"You can't just turn the conveyor belts back on and go back to normal."

Food prices have risen at the fastest rate since the 2008 financial crash - Credit: PA

Martyn also pointed to supply chain disruptions, with demand for the tools and means to import goods seeing a huge increase in demand after the pandemic. 

"This demand has seen petrol, airline fuel and all the things required to transport goods rise in price. 

"The price of a shipping container has gone ballistic. 

"On top of that, extra paperwork as a result of Brexit has delayed the import of goods.

"So there's been a real impact on getting everything to where it needs to be on time."

Businesses across the UK have also reported staff shortages and a lack of manpower. 

The price of things required to transport goods have risen in price - Credit: Sarah Lucy brown

From shipping to picking food in the fields, bosses are struggling to hire enough people to fill important vacancies. 

"All of this adds up", said Martyn. 

"Through no fault of their own, people are paying high prices. 

"On the surface, there is no logic to it, but when you look behind the scenes it's because of all of these issues that we're facing this level of crisis."

Adam Searle is managing director at CP Transport, a haulage company based in Suffolk. 

He has seen first-hand the issues arising on global supply chains. 

"Sea freights, transport and supply chain costs have gone up considerably over the last couple of years", he said.

"Pre-Covid, a container from China to Felixstowe would have cost something similar to $2,500.

Adam Searle, managing director of CP Transport - Credit: CP Transport

"Now it's come back down to around $10,000 on average, but it's still four times the cost. 

"This has to be paid for somewhere so the price of whatever is in the sea freight rises as well. 

"Unfortunately, price increases need to be passed on to the next person in the supply chain. 

"My costs, wages and fuel for example, have gone up by around 25%.

"Fuel prices have gone up at least 7p a litre in the past week. 

"AdBlue has gone up around 50% overnight as well from 55p a litre to 90p a litre. 

"So we're now spending nearly £100 a week on that. 

"I have had to pass all these costs on to my customers and, in turn, that's being handed down to consumers."

Haulier, Adam Searle said his costs have gone up by around 25% - Credit: PA

According to the latest Consumer Prices Index (CPI) measure of inflation, the top 10 food items to see the largest percentage change in average price over the last 12 months to July 2022 are as follows:

Margarine and other vegetable fats: 22.5%

Sauces, condiments, salt, spices and culinary herbs: 21.2%

Martyn James' tips for saving money on your food shop:

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