Economics bulletin 24 June

Date : 23 June 2022
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 Ukraine crisis, the rising cost of living, labour shortages, COVID-19 and adapting to a new relationship with the EU.

Accelerating food inflation

UK inflation has reached its highest level in 40 years, reaching 9.1% on the CPI measure and 11.7% on the old RPI measure.

Food price inflation increased by 2% in May, up to 8.7%. Food price increases are broad based, with products such as bread and meat seeing the highest price rises. See our latest Viewpoint Shorts for more information.

Last week, IGD released our latest Viewpoint Special report: Exploring the outlook for food inflation. Our forecasts indicate food inflation is likely to peak at 15% in late summer, averaging 10.9% over the year.

Government food strategy

 

Following the publication of the Government food strategy, DEFRA have launched two consultations that build on the policy proposals within the white paper:

Rail strikes

Freight levels across the UK rail network are expected to be around 50% lower due to the Network Rail strikes, causing further disruption for businesses across the food industry.

Network Rail staff are taking part in 3-days of strike action on 21st, 23rd and 25th June. Freight trains carrying critical deliveries will be prioritised.

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