UK food price inflation could hit nearly 7% in 2027, says industry researcher
The IGD said fruit and vegetables will drive the increase as severe El Niño effects and higher input costs keep pressure on prices.
- On Wednesday, the Institute of Grocery Distribution forecast British food price inflation will reach up to 3.9% this year and nearly 7% in 2027, ending the current period of price weakness.
- Middle East disruption, rising input costs, and an extremely severe El Niño event are driving the anticipated surge, with crop damage expected to persist well into 2027 and beyond.
- Fruit and vegetables will make the largest contribution to inflation due to weather sensitivity, prompting the Bank of England to warn that higher food prices could embed broader inflation expectations within the economy.
- Market researcher Worldpanel by Numerator reported a recent uptick to 2.3% in early September, contrasting with Office for National Statistics data showing food and drink inflation fell to 1.3% in July.
- IGD chief economist James Walton warned that stock buffers have only delayed pressures from disrupted energy markets, urging greater domestic productive capacity to improve resilience through 2028.
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10 Articles
UK Food Price Spike: A Forecast of Inflation Challenges
British food price inflation is forecast to rise up to 3.9% this year and nearly 7% by 2027. This increase is attributed to Middle East disruptions, rising input costs, and extreme weather influenced by El Nino, according to grocery industry experts.
UK food price inflation could hit nearly 7% in 2027, says industry researcher
British food price inflation will reach up to 3.9% this year and nearly 7% in 2027, driven by Middle East disruption, rising input costs and extreme weather linked to El Nino, a prominent grocery industry researcher said on Wednesday.
IGD Warns Of Two Years Of High Food Inflation As Cost Pressures Build
Whilst official data released today showed food inflation remained unchanged at 1.3% last month, new analysis from IGD forecasts average inflation of 2.9% – 3.9% in 2026, rising to 5.6% – 6.6% in 2027 and 5.3% – 6.3% in 2028. (more…) The post IGD Warns Of Two Years Of High Food Inflation As Cost Pressures Build appeared first on KamCity.
Food inflation to strengthen in 2027 as cost pressures build, IGD forecasts
IGD (Institute of Grocery Distribution) has released its latest food inflation forecasts, putting average inflation at between 2.9 - 3.9% for 2026, rising to 5.6 - 6.6% in 2027 and 5.3 - 6.3% in 2028. Plentiful food stocks at the start of the year, hedging… This story continues at Food inflation to strengthen in 2027 as cost pressures build, IGD forecasts Or just read more coverage at Talking Retail
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