A leading grocery industry researcher, the Institute of Grocery Distribution (IGD), has cautioned that food and drink prices in the UK will persistently rise in 2024, contributing to an ongoing

cost-of-living crisis. The IGD, known for its accurate UK food inflation forecasts, estimates that food and drink inflation will range between 0.3% and 2.3% by the end of the year, according to its latest report.

While UK food price inflation reached its highest point since 1977 in March of the previous year, exceeding 19%, the official measure slowed to 8% in December. Despite this slowdown, escalating food prices continue to strain the financial well-being of many households.

Michael Freedman, Head of Economic and Consumer Insight at IGD, commented on the recent inflation figures, emphasizing that the cost-of-living crisis remains a pressing issue for numerous consumers. He highlighted a growing divide between mainstream society and those with the lowest incomes.

The decline in household living standards over the past two years, attributed to high inflation, poses a significant electoral challenge for Prime Minister Rishi Sunak. Sunak has indicated the possibility of a national election in the latter half of the year.

As of December, Britain's overall inflation rate stood at 4.0%. In November, the Bank of England projected that the inflation rate would surpass 3% throughout 2024, with updated forecasts expected on February 1.

The IGD report also underscored the importance for food businesses to stay informed about upcoming policy changes in 2024. These changes include new post-Brexit border checks for goods imported from the European Union and a review of origin labelling for food and consumer goods. Photo by Wclifton968, Wikimedia commons.