Food inflation set to surge next year as Iran war ramps up supply costs

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Food inflation "will hit four per cent next year" (Yui Mok/PA Wire) Food inflation could top six per cent next year as rising fuel prices triggered by the war in Iran ramp up supply chain costs, a top...

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The Food and Drink Federation , which represents the UK’s food manufacturers, has urged the government to help the industry keep its costs down, warning that soaring food inflation could jeopardise food security.Food inflation is set to reach four per cent by December and hit a peak of 6.4 per cent in July next year, the group has forecast, as the supply chain costs caused by the Iran feed through into prices.","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ESLV":"Eventide Large Cap Value ETF","EQRR":"ProShares Equities for Rising Rates ETF","SDOG":"ALPS Sector Dividend Dogs ETF","LGH":"HCM Defender 500 Index ETF","CGUS":"Capital Group Core Equity ETF","BAMA":"Brookstone Active ETF","CDC":"VictoryShares US EQ Income Enhanced Volatility Wtd ETF","FITZ":"Fitz-Gerald Must Have Portfolio ETF","FXD":"First Trust Consumer Discretiona","CGDV":"Capital Group Dividend Value ETF","SAMT":"Strategas Macro Thematic Opportunities ETF","CLIX":"ProShares Long Online/Short Stores ETF","MAPP":"Harbor Multi Asset Explorers ETF","BKDV":"BNY MELLON DYNAMIC VALUE ETF","DFUV":"DIMENSIONAL US MARKETWIDE VALUE ETF","CGVV":"Capital Group U.S. Large Value ETF","REMC":"COLUMBIA RESEARCH ENHANCED MID CAP ETF","TCTL":"Premise Capital Diversified Tactical ETF","ADPV":"ADAPTIV SELECT ETF","IUS":"Invesco RAFI Strategic US ETF","VXZ":"中期波动率指数期货ETN","RMIF":"LHA Risk-Managed Income ETF","SPCT":"Liberty One Spectrum ETF","RULE":"Adaptive Core ETF","DECU":"AllianzIM U.S. Equity Buffer15 Uncapped Dec ETF","PRVS":"Parnassus Value Select ETF","VOTE":"TCW Transform 500 ETF","AGGZ":"Twin Oak Enhanced Fixed Income ETF","DIVZ":"TrueShares Low Volatility Equity Income ETF","VTV":"Vanguard Value ETF","PSC":"Principal U.S. Small-Cap Multi-Factor ETF","FLV":"American Century Focused Large Cap Value ETF","TEQI":"T. 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The Food and Drink Federation (FDF), which represents the UK’s food manufacturers, has urged the government to help the industry keep its costs down, warning that soaring food inflation could jeopardise food security.Food inflation is set to reach four per cent by December and hit a peak of 6.4 per cent in July next year, the group has forecast, as the supply chain costs caused by the Iran feed through into prices. \n\nThe FDF says that this rate of inflation could be slowed if the government cuts the costs of regulation like the renewable packaging levy, a levy on soft drinks and new rules around the promotion of less healthy foods. The food manufacturing industry took a £2bn hit from these regulations – plus the hike to employer national insurance contributions and another plastic packaging tax – in 2025 alone.\n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nKaren Betts, chief executive of the federation, warned the government’s failure to slow this “tsunami of legislation” will cause manufacturers to slow their investment in new supply chains and factories in the UK.\n\nShe said: “We’ve seen it in response to the last three budgets, where there’s been so much speculation about possible tax rises that [manufacturers] have deferred making decisions until they’re clear what the tax position will be.“What worries us with all these inflationary pressures, all this regulatory uncertainty is [that] those investment decisions are not being made. And in the end, a lack of processing and manufacturing capability in the UK will undermine food security.”The FDF said the government’s plans to re-align its food safety standards with those of the European Union is also causing concern for manufacturers because the government is “underestimating” the cost and complexity involved.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.49.0","shortVersion":"4.49.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2666698307","isCrawlerRequest":true}