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A report from the Energy and Climate Intelligence Unit finds that UK grocery prices recover slowly after global shocks. Food costs have risen more than 40 percent since mid-2021, with bread and pasta among items staying high.
British households continue to face higher prices for staple foods including bread and pasta, according to analysis released by the Energy and Climate Intelligence Unit. The report links the sustained increases to disruptions from the Middle East situation and the El Nino weather pattern.
The ECIU examined more than three decades of UK price data and found that after major shocks, shelf prices recover only 1 percent of the initial rise after six months and 7 percent after two years. When measured against wages, just 35 percent of the affordability loss is reversed within two years.
ECIU food and farming analyst Chris Jaccarini said the data show prices move upward quickly but decline slowly. He noted that recent Middle East developments have raised costs for oil, gas, and fertilizer used in food production and transport. The same report states that three of the five worst harvests in England in the past five years occurred recently, and that next year is forecast to be the hottest on record globally.
Dimbleby, former lead of the government’s National Food Strategy, said food inflation has been severe and will persist unless underlying causes are addressed. He pointed to the food system’s dependence on energy, fertilizer, and transport costs. Anna Taylor, executive director of the Food Foundation, said the lasting effect of price shocks means millions of people find food harder to afford even after the initial events subside.
She called for a statutory long-term plan to build resilience in the food system. A previous ECIU projection indicated UK food prices could reach 50 percent above mid-2021 levels by November. The report also noted that El Nino temperatures tend to affect cocoa, vegetable oils, rice, and sugar, with additional risks for bananas, tea, coffee, chocolate, and soy-fed meat.
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