Plagued by inflation and the weakness of sterling, food and drink suppliers and their supermarket customers may see prices on the supermarket shelves forced upwards, in the crucial period before Christmas, PwC says.
PwC says that current climate, in which consumer food prices have been buffered from the full weight of inflation -despite rising commodity costs- cannot be maintained.
Commodity prices of consumer staples including pork (up 63.9%), poultry (up 33.6%), wheat (up 28.2%), rice (up 21.7%), tea (up 17.9%) and olive oil (up 17.3%) have increased significantly since the beginning of the year. Additionally, between May and June alone, the price of pork meat and rice rose by 20% and 10% respectively. Given those increases, PwC says that food producers, supermarkets and the wider industry will have to agree new terms, ultimately translating into a more costly shopping basket for the consumer.
Stephen Oldfield, Agrifood partner at PwC, said:
Headwinds affecting the food and drink industry
Stephen Oldfield, Agrifood partner at PwC, added:
Current opportunities in Northern Ireland
Corporate Affairs, Northern Ireland and Deputy Head of UK Media Relations
Tel: +44(0)7799 346 925