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UK food inflation heading towards 10% due to Iran war, industry says
The trade body said energy-market disruption is lifting production, transport and packaging costs for 12,000 manufacturers.
- The Food and Drink Federation warned Wednesday that food inflation will reach at least 9% by the end of 2026, tripling its previous forecast of 3.2% due to the Iran war.
- Conflict in the Middle East has closed the Strait of Hormuz and damaged energy infrastructure, driving up production costs for manufacturers already facing mounting transport and packaging expenses.
- Diesel costs for farm machinery have surged 80% since the war began, while average British household food bills could rise by around £588 annually under the new forecast.
- Chancellor Rachel Reeves is meeting supermarket chiefs from Sainsbury and Tesco on Wednesday to assess the impact of these price rises on the cost of living.
- The FDF's upgraded figures rely on assumptions that the Strait of Hormuz opens to cargo traffic within two to three weeks and that key facilities return to normal within a year.
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UK food inflation heading towards 10% due to Iran war, industry says
Britain's food prices will be rising by almost 10% by the end of this year due to the Iran war, the country's food and drink manufacturers' lobby warned on Wednesday, around three times faster than its previous forecast.
·United Kingdom
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Middle East war could drive UK food inflation to 9% this year, trade body warns
The Food and Drink Federation hiked its inflation forecast for the year in light of the conflict. Food inflation could soar higher than 9% by the end of 2026 as war in the Middle East risks pushing up the cost of living for British households, a trade body has predicted. The Food and Drink Federation (FDF), which represents 12,000 food and drink manufacturers, hiked its inflation forecast for the year in light of the conflict. Economists for the…
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