Supermarket warning: Food prices ‘likely’ to soar in coming months

EU: Expert warns food prices to rise after coronavirus pandemic

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Britain’s food and drinks shortages have made headlines in recent months and weeks, and the crisis seems to be far from over. A lack of HGV drivers in the country has not only led to a shortage of food, but also to an increase in prices.

According to the latest industry data, food prices are set to increase due to rising supply costs.

The British Retail Consortium (BRC) has warned that supermarket prices are likely to rise following months of increased commodity and shipping costs.

Retailers will soon have no choice but to hike the prices of their stock.

The lack of HGV drivers in Britain has also contributed to the problem.

According to the Road Haulage Association (RHA), Britain is currently short of around 100,000 lorry drivers, compared to a shortage of 60,000 in February 2020.

This is due to many EU citizens working in the UK having returned home in the aftermath of Brexit and the pandemic.

A lack of drivers has led to pubs, restaurants, and companies missing out on deliveries in recent weeks and months.

The shortages have also impacted supermarkets, with many Britons’ commenting on the bare shelves in stores on social media.

Although fresh food prices fell for the ninth consecutive month in August, with deflation easing to 0.6 percent from a decline of one percent in July, they are now predicted to rise.

BRC’s Chief Executive, Helen Dickinson, said: “Food retailers are fighting to keep their prices down as far as possible.

“But mounting pressures – from rising commodity and shipping costs as well as Brexit-related red tape – mean this will not be sustainable for much longer, and food price rises are likely in the coming months.”

Ms Dickinson added that non-food categories, such as electricals, are also likely to see prices of their products rise.

This is due to global issues with delayed shipping and microchip shortages.

Mike Watkins, Head of Retailer and Business Insight at NielsenIQ hoped that retailers will be able to keep food prices low, despite problems within the supply chain.

He said: “With shoppers now returning from their summer holidays many will be reviewing their household budgets.

“So, the next few months will be an important time for retailers to keep prices stable by absorbing as much of any increase in their supply chain costs as possible.”

In other food news, more companies have confirmed they are struggling with stock shoartges.

Last week, both Greggs and Costa Coffee announced they were missing food menu items.

Costa Coffee wrote on Twitter: “We are facing some supply chain issues just now.

“We’re working hard to resolve this ASAP.”

There is no decaffeinated coffee or strawberry lemonade bottles currently available at the company’s restaurants.

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