UK food price inflation forecast to reach 6.4% by July 2027
The Food and Drink Federation expects UK food and non-alcoholic drink inflation to rise amid energy, logistics, weather and packaging costs.
London, United Kingdom. British food price inflation is forecast to approach 4 per cent by the end of the year and peak at 6.4 per cent in July 2027, the Food and Drink Federation said on Wednesday. The industry body cited the impact of the US-Iran war, drought in Europe and the El Niño weather pattern.
Revised forecast
The federation forecast that food and non-alcoholic drink prices in December would be 3.9 per cent higher than a year earlier. This was substantially lower than its previous forecast of nearly 10 per cent inflation.
However, it said prices would continue to rise after December and reach a peak of 6.4 per cent in July 2027.
Cost pressures
Food and Drink Federation Chief Executive Karen Betts said manufacturers had kept food prices as low as possible during the energy shock following the closure of the Strait of Hormuz, but could not continue to do so indefinitely.
She said persistently higher energy, logistics and packaging costs, compounded by extreme heat during the summer, would push food prices higher this year and sustain the increase into 2027.
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