Your overview of economic and policy news with a focus on the food and consumer goods industry. Featuring the latest developments and guidance on the rising cost of living, the Ukraine crisis, labour shortages, policy developments and adapting to a new relationship with the EU.
Food inflation expectations
Food inflation reached 19.0% in April, the second highest level in 45 years. Despite this, IGD ShopperVista research shows that fewer consumers (75%) expect food prices to get more expensive in the next 12 months. This is the lowest level since July 2021.
Next Thursday 8 June, we will release our new food inflation forecasts. Keep an eye out for the latest Viewpoint Special Report: Exploring what’s next for food inflation on the IGD economics page.
Shopper confidence rises
IGD’s Shopper Confidence index rose marginally in May to -15 to reach its highest level in more than two years. This increase is mainly being driven by more optimistic expectations on food price rises. ShopperVista subscribers can read the full Shopper Confidence Index report.
Deposit Return Scheme update
The Scottish Government has confirmed that they will assess whether the Deposit Return Scheme can go ahead following the UK government’s decision to block the inclusion of glass bottles in the scheme.
The UK Government has granted an exemption to the UK internal market rules to allow the Scottish Deposit Return Scheme to go ahead on 1st March 2024. PET bottles, aluminium and steel cans have been permitted to be a part of the scheme.
Retained EU Law consultation
DEFRA has proposed reforms to retained EU law related to wine. This includes labelling and packaging changes, and the ability for imported wine to be blended in the UK. It also permits the production of low and no alcohol wine.
The Government has launched a consultation, closing on 21 July 2023.
Australia and New Zealand trade deals
Trade deals agreed with Australia and New Zealand following EU exit have now gone live. All tariffs on UK goods exported to and imported from Australia and New Zealand have been removed.
Food and drink sector specific guidance for exporters can be found here.
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Our round-up of the latest economic and political news, focused on FMCGs