Finance expert warns Brits over supermarket prices after Bank of England update | UK | News

The inflation rate has remained the same over the last few months, according to the Bank of England inflation update. However, this does not mean that supermarket prices are clear-cut; as world events may have a delayed impact on these prices in the coming months. The Office for National Statistics (ONS), which publishes figures on inflation, said food inflation was slow compared to other areas of consumer spending. Economists had predicted this rate would rise to 3% in May, so this was a welcome relief for many households.

“While the war in the Middle East is pushing up prices globally, we have the right economic plan and inflation remains stable,” Chancellor Rachel Reeves said in a statement after the figures were released earlier this week. But supermarket prices may not be clear-cut when it comes to the effects of the conflict in the Middle East, an expert has warned. Industry insiders and analysts have previously warned of more expensive food products as a result of the war, but this has yet to be felt by UK households.

Food and Drink Federation (FDF) chief executive Karen Betts said: Sun: “It is good to see an easing in food inflation in May, but consumer prices still do not reflect the inflation resulting from the closure of the Strait of Hormuz.

“It usually takes several months for the increased costs paid by farmers, processors and manufacturers to be reflected in increased prices at the tills… and we expect food inflation to increase this year and next year as well.”

Several experts have previously told the Daily Express the impact of the war on superbrand prices. Jim Mellon, investor and Agronomics Chief Executive, said: “Global conflicts, alongside climate change, are causing food shortages, supply chain issues and price rises in the UK and beyond.”

George Philips, commercial director at Wains, the UK’s largest World Food distributor and wholesaler, listed several products at risk of an increase.

• bottled water
• cooking oil
• liquid dishwashing
• Tea
• Coffee
• Rice
• Sugar
• Meat
• Milk
• Bread
• Pasta
• Cereal

Retail analysts at Omnisend said oil and gas prices will make it more expensive to transport goods, which will eventually be reflected in the final price displayed in stores. “This extra cost rarely goes away and many of Britain’s biggest retailers will probably do anything to prevent it from affecting their margins, so unfortunately this tends to be passed down the chain whilst avoiding deterring consumers altogether,” said retail analyst Marty Bauer.