Food and drink inflation continues to rise – FDF Scotland statement

THE ONS inflation data for November shows food and drink price inflation continuing to rise to 16.5%, whilst headline inflation slowed in November, down to 10.7%.

Food and Drink Federation Scotland’s Chief Executive Officer David Thomson said: “The price of food and drink is continuing to rise, with food and drink price inflation hitting 16.5% today.

“Our food and drink manufacturers continue to see persistent rises in their key costs – from ingredients to logistics, packaging and labour costs. This is an extremely worrying time for our producers who are fighting to survive. Despite their best efforts to find efficiency savings, some price rises are having to be passed through to consumers.

“Energy still accounts for a significant portion of companies’ costs and we are seeking urgent clarity from the UK Government on what energy support will be available to the food and drink supply chain in the Spring. The withdrawal of support will undoubtedly put further pressure on food and drink prices.

“The Scottish Government needs to use their powers to prioritise measures which will drive growth and cut the cost of doing business in tomorrow’s budget. This means being ruthless in dropping or postponing proposed laws which, if brought in, will hit the pockets of businesses and consumers.”