This is one of the most difficult times for the food industry in decades, according to Lord Christopher Haskins, former chair of Northern Foods.
Haskins, who was the chairman from 1980 to 2002, said consumers will see food prices go up “substantially” in an interview this morning on BBC Today. With wages expected to stay flat, this means consumers will be hit hard.
The Office for National Statistics today reported prices rose 0.9 per cent in October, missing expectations of a two-year high of 1.2 per cent, but consumers can expect inflation to keep rising.
Although big brands have been making headlines with reported price hikes, Haskins said the prices of staples like milk and bread could go up due to the weak pound, supply shortages and the disruption of discounters and online services to traditional retailers.
If giants like Tesco are forced to increase their prices, smaller chains will have to take a big hit and hope their customers are loyal.
Haskins said this is the worst he’s seen the food industry in his career since 40 years ago when inflation was at 25 per cent.