According to the report elaborated by the Food and Drink Federation, the prices for food in the UK by the end of 2021 were up by 4.5% compared to one year ago, which is the highest increase in nearly ten years. This is a consequence of two major factors: inflationary pressures from other sectors and labor market issues. Food producers had difficulty coping with a significant increase in costs for energy, logistics, and ingredients. Shortage of workers and high competition in a tight labor market increased the workforce costs.
As a result, prices for oils and fats rose by 13.1%, vegetables by 6.0%, and meat by 4.4%. Producers continue to struggle to avoid passing these costs on, however in the current context, when the overall inflation rate reached 5.4%, and the expectations for the spring are 6%, that is not easy to do.
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