Food prices are expected to rise in the coming months, according to supermarket warnings.
Supermarket prices are expected to climb in the next months, according to food industry officials. Driver shortages are to blame, among other things.
Food and drink shortages in the United Kingdom have hit the news in recent months and weeks, and the problem appears to be far from ended. A shortage of HGV drivers in the country has resulted in a food shortage as well as a rise in costs.
Food prices are expected to rise due to rising supply costs, according to the most recent industry data.
Following months of rising commodity and shipping costs, the British Retail Consortium (BRC) has warned that supermarket prices are expected to climb.
Retailers will soon have no choice except to increase their stock prices.
The shortage of HGV drivers in the United Kingdom has significantly exacerbated the problem.
According to the Road Haulage Association (RHA), the United Kingdom currently has a shortfall of roughly 100,000 lorry drivers, up from 60,000 in February 2020.
This is owing to the fact that many EU residents employed in the UK have gone home as a result of Brexit and the pandemic.
Due to a shortage of drivers, pubs, restaurants, and businesses have missed deliveries in recent weeks and months.
The shortages have also hit supermarkets, with many Britons taking to social media to complain about barren shelves in retailers.
Despite the fact that fresh food prices declined for the ninth month in a row in August, with deflation slowing to 0.6 percent from one percent in July, they are now expected to rise.
Helen Dickinson, the BRC’s Chief Executive, said: “Food retailers are battling to maintain their prices as low as possible.”
“However, growing commodity and shipping prices, as well as Brexit-related red tape, imply that this will not be sustainable for much longer, and food price increases are inevitable in the coming months.”
Non-food sectors, such as electricals, are also likely to face price increases, according to Ms Dickinson.
Due to worldwide concerns such as delayed shipping and semiconductor shortages, this is the case.
Despite supply chain issues, Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, believes that retailers will be able to keep food prices low.
“With many shoppers returning from their summer vacations, many will be reconsidering their household budgets,” he said.
“As a result, the next few months will be critical for retailers to maintain.”Brinkwire Summary News”.