According to the British Retail Consortium (BRC), inflation for food and drink hit 3.7% in June, up from 2.8% in May, driven in large part by lower harvest volumes. Retailers also pointed to rising costs in labor and business taxes as further inflationary pressure.
BRC CEO Helen Dickinson stated: “We anticipated inflation rising throughout this year’s autumn budget cycle. Unexpectedly extreme weather and ongoing geopolitical tensions have caused it to accelerate.”
The impact on wholesale prices was stark:
Gooseberries: up 243%
Blackberries: up 25%
Raspberries: up 15%
Apples: up 7%
Strawberries: up 3%
UK farmers are increasingly affected by inconsistent weather, from drought to unseasonable rain, leading to significant losses—in total, last year’s arable crops suffered around £1.2 billion in damage.
Scientific models predict that climate change—driven by greenhouse gas emissions—will increase the frequency of floods and droughts in the UK. Globally, food prices have also been influenced by poor harvests, international conflicts, and trade policies.
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Earlier this year, high global chocolate prices followed extreme heat in West Africa affecting cacao yields. Meanwhile, coffee prices surged in response to weather disruptions in Brazil and Vietnam.
NielsenIQ analyst Mike Watkins noted that while warmer weather can boost footfall in retail stores, inflationary pressures may limit consumer spending later in the year. He predicts that supermarkets will emphasize “value-for-money” messaging as the summer progresses.
Source: The Guardian
