Food poverty prices set to soar by 60 percent
FOOD poverty will rise sharply as inflation tops 10 percent this year, families were warned yesterday.
Producer prices for core staples such as milk, barley and pork were up by a fifth by the end of March and will hit consumers in the next few weeks. And butter is set to rocket by 60 percent by the end of the year.
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Prices of wheat and cooking oil have already soared because of the war in Ukraine but they will only get higher, say experts.
Charles Hall, of retail analysts Peel Hunt, said: "This will result in a sharp increase in food poverty in the UK. Inflation is likely to top 10 percent.
"The 30-year improvement in living standards due to stable and reducing food prices is reversing.
"Food inflation increased 5.2 percent in March but will rise sharply as the impact of the war is felt."
Lindsay Boswell, of food charity FareShare, said: "Many families are now experiencing added hardship.
"We're calling for more support for those struggling to feed themselves, and more donations of food from across the food industry."
Nearly seven million people are said to be going hungry in the UK, including two million children. That is two million more since the pandemic.
The New Economics Foundation think tank says almost half of all children are in families unable to meet the cost of some basic necessities.
The Peel Hunt report also found palm oil prices are up 75 percent and coconut oil 30 percent.
And cotton prices have risen 130 percent year-on-year.
Fuel, energy and travel bills have also been rising steadily in recent months, with inflation now running at 6.2 percent, its highest level for 30 years.
Mr Hall added: "It may be painful in the UK, but that's nothing compared to the increase in the cost of living in a number of countries, particularly those with a high level of imports from Russia and Ukraine."
People are saving less and plundering nest eggs to pay the bills.
Savings are expected to fall by 71 percent on last year to an average of £26 a week, according to Scottish Friendly and the Centre for Economics and Business Research.
Over half of 2,000 people polled had used savings or investments to boost income in the past six months.
Kevin Brown, of Scottish Friendly, said: "It's a case of cutting costs wherever needed to make ends meet."
