By Hannah Ahmed,Neil Shaw
Copyright birminghammail
The Food and Drink Federation (FDF) has claimed inflation on food and beverages could rise to 5.7 per cent by the end of 2025. According to the organisation, the forecast hike is due to manufacturers facing more cost pressures, which are in turn “trickling down” to Britain’s supermarkets. In an unsettling revelation, the FDF said the current prices we pay everyday are “steeper than anything in recent decades.” The latest expected inflation rates are higher than originally thought, with experts previously believing the rate to stand at 4.9 per cent in September and 4.8 per cent in December. READ MORE: British Gas update over using electricity between 11am and 1pm tomorrow Research over a long period has shown that between January 2020 and July 2025, food and non-alcoholic drink prices increased by 37 per cent, in comparison with 28 per cent for overall prices, BristolLive reported. Numerous household essentials have seen enormous hikes, with sugar costs jumping up 56 per cent, while whole milk has shot up 46 per cent and cheese by 31 per cent, experts have discovered. The FDF said that UK food inflation has been higher than other European countries in recent months, including France, Germany and Spain, indicating that domestic policies have played a key part. It pointed to a higher rate of employer national insurance and new packaging taxes weighing heavily on the sector. Food manufacturers have absorbed rising production costs over recent years but are increasingly have to pass it on to consumers through higher prices in shops, the FDF argues. Liliana Danila, the FDF’s lead economist, said: “Looking at the longer-term picture, today’s prices are steeper than anything in recent decades.” She added that spikes in energy and raw ingredients prices had now stabilised, meaning inflation was being “fuelled by the financial impact of domestic policies, now trickling down to supermarket shelves.” READ MORE: Nationwide customers sent ‘close accounts before October’ warning FDF chief executive Karen Betts said the UK was an “outlier” against comparable European economies, adding: “The costs are such that companies can no longer absorb them and are having to pass at least some of them on to consumers. “As this autumn’s Budget looms, it’s critical that Government does not add further to the already high costs of regulation in our sector. “We’ve been hit by rising taxes, employment costs and a new packaging tax. We’re calling on Government to help us turn this tide by partnering with industry to attract investment, accelerate productivity growth, boost skills and grow exports across our sector. “This will help counter inflation and secure a more resilient future for UK food and drink manufacturing.” The publication said it had contacted the Government for comment.