Is there a solution to the rising costs of groceries?

We don’t yet know if this Christmas will be a white one, but we may be certain it will be expensive.

- SEAN O'GRADY

In cash terms, the cost of festive food and drink will be the highest ever. It is but one of the many consequences of British food price inflation running persistently above general inflation a situation that makes us all poorer than we otherwise would be, and carries other dangers...

What's going on with the economy?

Latest data from the Food and Drink Federation (FDF) suggests the annual rate of food and drink inflation will hit 5.7 per cent by December, blaming the “financial burden of government policies”. The rate is already 5.1 per cent (in August), higher than Germany, France and the United States. The very latest forecast from the IMF sees UK inflation as being the worst in the G7 group of advanced economies. Britain is also exposed to exchange rate movements because it imports so much produce.

Where is it worst?

Beef, up 25 per cent on last year, with joints of all kinds of meat now protected by security tags in supermarkets. Butter, chocolate, coffee and milk are all up by double-digit inflation. But it's been everywhere; food prices are, on average, 38 per cent higher than in January 2021.

Why is this happening?