‘Expect every 1% of food price inflation to add £33 to annual bills’

Shoppers can expect the average annual food bill to increase by £33 for every one per cent in food price inflation, an environment minister has said.

In response to a written parliamentary question, Victoria Prentis said analysis by the Department for Environment, Food and Rural Affairs (Defra), which is based on ONS data, shows that “every 1 percent increase in food price inflation increases the average, annual food bill of the UK household by £33”.

Year-on-year food price inflation rose to 8.7 per cent in May, up from 6.7 per cent in April. According to the Office for National Statistics (ONS), this is the highest rise since March 2009. 

Her comments were in response to Labour MP Sam Tarry (Ilford South), who asked the government to assess the implications of its policies given the findings of research by Kantar, that the average annual grocery bill in the UK “will potentially rise by £380 this year”.

According to forecasts published from data firm Kantar, the average consumer’s annual grocery bill is on course to increase by £380.

Kantar monitors the shopping habits of 30,000 households across the UK and the figure is more than £100 higher than the company’s previous projection, reported in April.

“We are concerned by the rising pressures on household incomes and are monitoring them closely,” Prentis said, adding that the government will continue to monitor food prices using the ONS inflation figures.

“Year-on-year food price inflation rose to 8.7 per cent in May, up from 6.7 per cent in April. Defra analysis, based upon ONS data, shows that every one per cent increase in food price inflation increases the average, annual food bill of the UK household by £33.”

On the actions the government is taking Prentis said that Defra is taking action to maintain an efficient food supply chain by mitigating against any potential burdens or friction which could otherwise drive up consumer food prices.