UK's Rising Food Prices

Published: 26 July 2007

Food and drink companies have warned that we can expect food prices to rise.

Wheat prices have already risen by more than 12% over the past 12 months, which in turn has triggered expectations of bread price increases.  Other grains and basic foodstuffs such as sugar, milk, cocoa, potatoes, peas and even fish and chips have also all increased in price.  According to various sources, the direct result is that shoppers are paying 4.9 per cent more for their weekly groceries compared with a year ago, and further increases in food prices are anticipated.

The key reasons behind these increases are: growing world population leading to increased demand for food; growing global prosperity increasing demand for meat and dairy products; use of agricultural crops for energy and industrial purposes; several years of poor harvests meaning that worldwide production has been less than consumption; plus recent poor weather in the UK and elsewhere in Europe.