Britain’s Food Sector Hit Hardest by Rocketing Energy Costs
(Bloomberg) -- The U.K.'s food and drink industry is suffering more from soaring energy and raw material costs than any other business group, according to the Office for National Statistics.
More than two-thirds of the country's food and beverage companies said prices of materials, goods or services rose in March, compared with about half for businesses across all sectors, the statistics office said in its Business Insights and Conditions Survey. Energy price increases affected 60% of those in the food and drink industry, versus about 38% across all sectors.
The report highlights the challenge confronting policy makers, with the economy set for a period of “stagflation” -- rapidly rising prices and slow growth. Soaring food and energy prices threaten to push U.K. inflation into double digits this year, adding to pressure on Chancellor of the Exchequer Rishi Sunak and the Bank of England to act.
Read more: U.K. Business Leaders Warn of ‘Dramatic Collapse' in Confidence
This data comes as food costs increase worldwide due to the war in Ukraine, which has disrupted production and exports from one of the biggest suppliers of wheat, corn and vegetable oil. Natural gas and electricity prices have also increased drastically due to Europe's reliance on imports from Russia.
Only 3% of food and beverage companies said they hadn't been affected by prices, compared with 20% across all businesses, according to the survey.
©2022 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
