Meat, vegetable and dairy prices are set to rise “at least” 5% in the coming months because of the UK’s extreme weather this year, research suggests.
Consultancy CEBR said 2018’s big freeze and heatwave would end up costing consumers about £7 extra per month.
It follows price warnings from farmers’ representatives about peas, lettuces and potatoes.
Wholesale prices of other vegetables have already soared by up to 80% since the start of the year.
But CEBR explained that these increases can take up to 18 months to fully have an affect on shoppers.
“So, while the worst of the recent heat may have passed, the cost to consumers looks set to climb,” it warned in a statement.
The UK saw record temperatures in June, July and August which caused widespread drought and crop failures.
This, along with a “wet, cold and challenging” winter, particularly the cold spell caused by the Beast from the East, has put stress on farming costs and yields, CEBR said.
As a result, it said:
- Wholesale vegetable prices had jumped between March and July, with onion prices up 41%, carrots by 80%, and wheat for bread by a fifth
- The farm gate price of butter has climbed 24% since March, as hot weather hampered grass growth for grazing.
- Meat prices are set to rise due to a shortage of livestock feed.
“There’s bad news for wine fans too, as severe hailstorms in the French wine regions of Bordeaux, Champagne and Cognac have eliminated millions of bottles of product,” CEBR said.
It said these “wholesale price shocks” were likely to push up consumer costs by about £45m per week. That is equivalent to £1.79 per week per household.
Earlier this month, the Agriculture and Horticulture Development Board warned that livestock and vegetable prices would be a “little bit higher right the way through until next spring” because of weather issues.
Shortages of vegetables also helped drive food price inflation to 1.6% in July – up from the 1.2% in May and June, according to the British Retail Consortium (BRC) and Nielsen.