Food and Drink Federation Scotland Response to ONS Inflation Figures

FOOD AND Drink Federation (FDF) Scotland’s membership body representing food and drink manufacturers, has given a response to the latest ONS inflation figures on food price inflation.

David Thomson, Chief Executive Officer of Food and Drink Federation Scotland, said:

“It’s encouraging to see food and drink price inflation falling to 17.4% from its peak of 19.2% in March. We hope the rate of food and drink price inflation will continue to fall steadily over the coming months, offering households some relief from the rapidly rising prices of recent months.  

“However, food and drink manufacturers’ costs remain 33% higher than they were three years ago. Our sector is still dealing with many higher-than-normal ingredient costs and volatile and higher-than-normal energy prices, alongside persistent labour shortages. Global weather events – such as the heatwave currently affecting much of Europe – are also increasingly affecting agricultural output and seasonal supplies and will have an impact on prices. Russia’s decision to pull out of the Black Sea grain deal is unhelpful too and brings new risks to global grain supplies. 

“Food manufacturers continue to do all they can to keep prices rises to a minimum, making savings wherever possible while paying a fair price to their suppliers. But the impact on our sector is clear, with insolvencies on the rise particularly among smaller businesses, investments paused and vacancies unfilled – all of which is also having a negative impact on future growth.

“We need the governments across the UK to continue to work with us rapidly and decisively to mitigate these issues – for example in simplifying regulation to help reduce cost burdens and create the conditions for growth.”