UK food inflation set to reach 10 percent by year end
UK food inflation is forecast to hit 10% by year end due to the Iran war. Industry experts warn that rising energy costs will continue to drive up food prices.
The United Kingdom is facing a significant surge in grocery costs, with food inflation now projected to approach 10% by the end of the year. This sharp revision follows the outbreak of war involving Iran, which has disrupted critical global supply chains and energy markets.
The Food and Drink Federation (FDF), which represents about 12,000 manufacturers, warned on Wednesday that food and non-alcoholic drink inflation is likely to exceed 9% by December 2026. This figure is nearly triple the organization's previous estimate of 3.2%. The FDF noted that its forecast assumes the Strait of Hormuz will reopen to cargo traffic within weeks and that essential infrastructure for energy and fertilizer will return to normal within a year.
