Viewpoint special: Where does your food pound go? Part 1
25 March 2026Key findings and context on where the food pound goes across nine products and explains why recent food inflation is cost‑driven, not margin‑driven.
This part 1 report sets out the main findings, placing recent food inflation in its wider economic and policy context. It examines the role of government policy, market forces and structural competition, and challenges the assumption that rising food prices necessarily reflect rising profits.
Download the part 1 report to understand:
Updated retail food inflation forecasts for 2026–27, reflecting renewed energy price risks linked to the conflict in the Middle East.
A clear, evidence‑based assessment of what is driving food inflation in the UK, distinguishing between government policy impacts and market forces.
System‑wide insight into profitability and margin pressure across farming, processing and grocery retail.
An assessment of how much cost the UK food system has absorbed overall, and where pressures are now constraining resilience and investment.
Implications for business and government decision‑making, including productivity, investment, policy design and food system resilience.