Bulletin: Inflation and food industry priorities
11 July 2024Featuring IGD food inflation forecasts, food industry priorities, consumers post-election, and economic growth.
Lower food inflation
IGD’s NEW forecasts predict that food and drink inflation is expected to be much lower in the near to mid-term.
1-3% in 2024; average of 2%
1.1-3.1% in 2025; average of 2.1%
See the full details of our food inflation forecasts and how this differs by category.
IGD opinion
With inflation falling to more normal levels, weak volume growth is now exposed. Businesses must work together to restart volume growth and maintain it into the future.
Food industry priorities
Businesses across the food system will need to work together to drive forward progress at pace and play the fullest part in addressing the critical challenges across our food system.
At IGD we believe there are five key strategic priorities for the UK food system, that government should consider, and industry should collaborate on to drive progress.
Building resilience
Supporting sustainable agriculture
Accelerating the transition to Net-Zero
Building a future-fit workforce
Securing a healthier future
Read our Viewpoint report for more details of these priorities.
Steve Reed, the new Secretary of State for Environment, Food & Rural Affairs has outlined key priorities for change.
IGD opinion
The new government will be aiming for a ‘decade of renewal’. Work with the government should be considered in this context. The food system should consider how it can engage with government to build long-term partnerships. This will set the industry up better for the future and can enable the opportunity for businesses to co-create workable policy solutions.
Consumers post-election
New IGD ShopperVista research conducted after the general election reveals that for many, the scars of the cost-of-living crisis will have a lasting impact.
Only 35% are more optimistic about their personal economic outlook after the general election
Only 18% expect to have more money to spend in the year ahead
ShopperVista subscribers can see the full results here.
Economic growth plan
The Chancellor has outlined the first steps to help boost economic growth. She stated that “Growth is now our national mission. There is no time to waste.” The plans include:
Establishing a Growth Delivery Unit
A new National Wealth Fund - a catalyst to private sector investment
Planning reform
Restoring housing targets
Ending the ban on offshore wind in England
ONS has announced that GDP is estimated to have grown by 0.4% in May 2024 after showing no growth in April 2024. GDP is estimated to have grown by 0.9% in the three months to May 2024 compared with the three months to February 2024.
IGD opinion
The task of the new government is to secure this recovery, address the UK’s long-term strategic challenges and begin rebuilding public finances. These goals will not be achieved quickly.