CPI data sees food inflation remain high: comment

"While overall inflation is easing as the labour market softens, food inflation remaining high shows how even in temperate Britain our food system is increasingly vulnerable to climate change. British farmers have had to deal with weather swinging from too wet, to too hot and dry, leaving four fifths now concerned about their ability to make a living under climate change [2]. Extreme heat, floods and disease outbreaks overseas are pushing up the price of festive favourites [3], with the price per 100g of chocolate sharing tubs almost doubling in four years [4]. This is particularly bad news as household spending typically rises by about a third in December [5] magnifying the impact of higher food prices on already stretched family budgets.

"Alongside administered prices like water bills and rising private rents [6], climate shocks are keeping inflation high [4]. These prices have little to do with excess demand, meaning tight interest rates do not help [7]. Only through policy and regulation can government tackle these inflationary drivers. To stop climate shocks repeatedly driving food bills higher, we need to cut emissions to net zero, support farmers to adapt, and build a food system where risk is shared fairly through supply chains."