Until now, the cost of living crisis has been most closely associated with energy bills - but soon food costs will overtake energy as the main inflation driver.
Food costs are set to overtake energy bills in driving up UK inflation this summer, a new report has warned, reports The Manc.
The report by the Resolution Foundation has found that the cost of living crisis - until now dominated by sky-high energy bills - will soon be driven by rocketing food prices, once again hitting poorer UK households the hardest.
According to the report, whilst energy prices have risen faster in the UK it is still food that makes up the largest share of a typical household's outgoings.
As a result, as food prices continue to rise whilst energy bills fall back this summer it is predicted that the cost of eating will become the biggest threat to people's finances.
Food prices have increased by 25 per cent over the past year and a half, greatly impacting the squeeze on living standards in low and middle-income households.
And now, grocery bills are expected to increase again over the summer.
According to the thinktank behind the report, it was not clear that politicians were currently prepared for another year of food price rises or that “policy debates have caught up with the scale of what is going on”.
Food price inflation reached around 19 per cent in March, the highest in almost half a century. As a result, the report asserts that food prices will be 'contributing far more than energy to CPI inflation through the remainder of 2023.'
The report said: "By this summer, food costs will have overtaken energy bills in the scale of the shock they are administering to family finances."
The Resolution added that it can also model the scale of the impact across individual households, suggesting that this summer 16 million households (56 per cent) will face a big shock when it comes to paying for their food.
The Bank of England governer Andrew Bailey told business leaders earlier this month that he was 'concerned' that food and other non-energy prices would remain elevated.
Typically, food prices in the UK fall in the summer as locally-grown crops replace those imported from abroad.
However, factory gate prices for milk, meat and other foods have accelerated, in some cases by more than 50% year on year.
The Resolution Foundation’s report, Food for Thought, says food prices are expected to contribute “more to overall inflation than energy” in the months ahead.
“Between March and September 2023, food prices are expected to contribute around 2 percentage points to inflation each month, while the contribution of energy prices is set to fall from 3 percentage points to less than 1,” the report estimates.
The cost to the nation from higher food prices since the 2019-20 financial year would be £28bn by the end of the summer, compared with an extra £25bn cost from higher energy prices, it added.
Lalitha Try, one of the report’s authors, said: “Everyone realises food prices are rising but it’s less clear that the scale of the increases has been understood in Westminster.”
“What rising food prices have in common with surging energy bills is that they pose a greater challenge to lower-income households, who spend a higher proportion of their income on food – 15%, compared with 10% for the highest-income households in 2019-20.
“As a result, the effective inflation rate for the poorest 10th of households was almost 50% higher compared with the richest 10th of households in March.”
Featured image - RawPixel
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Met Office reports on how long the heatwave will last as yesterday was hottest May day on record
The Met Office has given us an idea of how long this current heatwave may last.
It comes after a new UK temperature record was broken yesterday, as it reached 34.8°C at the weather station in Kew Gardens – with the figure being both the highest daily maximum temperature recorded in meteorological spring (March, April, and May), as well as the highest temperature in May all together.
The previous record of 32.8°C was reached in 1922 and 1944.
If confirmed and validated, and May sees a new official daily temperature record, it would mean that more than half of the monthly record highs – seven out of 12 – have been set since 2003.
But what exactly is considered to be a heatwave? Well, heatwave conditions in the UK are met when a location records a period of at least three consecutive days with temperature values meeting or exceeding the heatwave temperature threshold for that location.
Looking ahead to the rest of the week, and providing the public with an indication of how long these temperatures could last, Met Office weather forecasters say the start of the week will see the heatwave continue for much of England and Wales with temperatures ‘well above average’, and today (Tuesday 26) expected to be another ‘very hot day’ with a rapid rise in temperatures through the morning.
The heat will then continue through the week, with highs of 31°C forecast for Wednesday, 30°C on Thursday, 27°C on Friday, and 28°C on Saturday.
“We’ve now provisionally broken the spring and May temperature record,” commented Met Office Chief Operational Meteorologist, Dan Suri.
“Meteorologically, what we’ve seen is the influence of warmth building under an area of high pressure near the UK allowing exceptional heat to build allowing maximum and minimum temperatures to reach levels not previously reported at this time of year.
“Further heat is in the forecast for much of England and Wales, with similar temperatures forecast for Tuesday.
“High pressure is forecast to gradually lose its influence later in the week, though maximum temperatures will still remain high and in the low 30°Cs for some mid-week and high 20°Cs late this week.”
Government to slash prices of bus travel, cinema tickets and LOADS more across UK for kids this summer
Emily Sergeant
Cinema tickets, trips to the theatre and the zoo, and children’s meals out are all set to be cheaper than ever this summer.
That’s because the Government has announced its newest initiative, Great British Summer Savings, which means that from 25 June through to 1 September 2026, a temporary reduced rate of VAT – down from 20% to 5% – will be introduced on children’s meals in restaurants and family leisure activities over the summer period.
Children’s meals served in restaurants, children’s and family tickets for the cinema, theatre, exhibitions, shows, and concerts, and admission tickets – for both children and adults – to a wide range of different attractions will be eligible for the discount.
Whether you want to visit an amusement park, fairs, circuses, museums, zoos, adventure parks, soft play centre, or something similar this summer, it just got a whole lot cheaper.
This aim of this initiative is to make family days out more affordable, while also supporting businesses through increased footfall.
The Government says it will work with eligible businesses to get the scheme ‘up and running’.
The Government is slashing the prices of cinema tickets, bus travel, and LOADS more across UK for kids this summer / Credit: Artem Kniaz (via Unsplash) | Supplied
And to make it even better, this is a UK-wide initiative, so no matter where you are in England, Wales, Scotland, and Northern Ireland, the reduced rate will apply.
Going one step further, there will also be free bus travel for children aged between five and 15 in England in August, helping to support families getting out and about this summer.
The Government says the Great British Summer Savings initiative supports the action it has already taken to reduce the cost of living – including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases, and raising the minimum wage.
Businesses will be able to apply the 5% rate of VAT on eligible sales between 25 June and 1 September 2026.
The Hoot -
24th May 2023 
