A recent report from the Institute of Grocery Distribution predicts that UK shoppers could see food prices increase by up to almost 5% in 2025.
The rise is attributed to higher costs for businesses over the coming year. While energy and commodity prices will be a little higher in 2025, according to the IGD, there will be significantly higher employment and regulatory costs for food businesses.
From July 2025, food businesses will also face higher import costs, mainly caused by the delayed final phase of post-Brexit border changes being implemented. Higher packaging costs will then follow in October due to regulatory charges.
The IGD believes that the food sector will only be able to absorb between 20% and 40% of these costs, meaning consumers will have to contend with the remainder.
For further information, visit https://www.igd.com