Cost of living crisis: Farmer warns food prices will rise
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M&S chairman Archie Norman warned that Britons may face a pricier supermarket shop this year, as the cost of living becomes increasingly higher.
He told BBC Radio 4’s Today programme: “It wouldn’t be surprising to see food price inflation over the course of the year running towards eight percent to 10 percent.”
But when asked if food prices were to become “apocalyptic”, the M&S chair was reassuring.
He answered that this needs to be kept in “context”.
Food prices may rise, however, so will wages.
Thus, the supermarket chair would not describe the cost increase as apocalyptic, he revealed.
However, this cannot be said for Andrew Bailey, governor of the Bank of England, who did describe the food situation as such.
Speaking yesterday to MPs on the Commons Treasury Committee, he noted that the ongoing conflict between Russia and Ukraine is the “big risk”.
“I’m afraid the one I’m going to sound, I guess, rather apocalyptic about, is food.”
He outlined two key factors following a conversation with Ukraine’s finance minister; the first, that while Ukraine does have food in store, it cannot currently get it out.
The second is a shipping issue.
While the finance minister was optimistic about crop planting, being a big supplier of wheat and cooking oils, the situation around shipping is getting worse, according to Andrew Bailey.
He admitted that it was a “major worry” for the UK.
Not only this, it is predicted to be a concern for the developing world also.
As for job rates and inflation in light of increased food prices, official figures show that Britain’s jobless rate has fallen to its lowest level in more 47 years.
However, workers have seen their pay fall due to inflation.
Darren Morgan, director of economic statistics at the Office for National Statistics (ONS), shared that for the first time since 1974, there were fewer unemployed people than there were job vacancies.
Regular pay excluding bonuses dropped by just under three percent in March when taking Consumer Prices Index (CPI) inflation into account.
This marked the biggest fall since November 2011.
Andrew described the situation as very difficult.
Tony Danker, director general of the CBI, told LBC that the Government must slow down the economy but not permanently.
He added that people missing meals is an “unacceptable” level of hardship, which is a measure some may sadly resort to due to the cost of living crisis.
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