Why food prices keep rising even though inflation is steady?

Inflation across the UK has steadied in recent months, but shoppers in Renfrewshire and beyond are still seeing their food bills rise.

Official figures show overall inflation is sitting at around 3.8%. Yet food and drink prices are climbing faster than that – up more than 5% compared to last year.

The question many people are asking is: if inflation has stopped rising, why is the weekly shop still costing more?

The answer is that food is facing its own pressures which are not easing quickly.

Global prices for basics like wheat, dairy and meat remain high because of poor harvests, extreme weather and supply problems. Droughts, heatwaves and flooding in different parts of the world have pushed up costs and reduced supply, and that has a direct impact on the shelves here.

Closer to home, the cost of producing and moving food is still steep. Farmers, processors and supermarkets are paying more for wages, transport and storage. Even though energy prices are not as high as last year, keeping food refrigerated and delivered is still expensive.

On top of that, food prices take time to catch up with what’s happening in the wider economy. Many of the contracts between suppliers and retailers were signed months ago, when costs were higher, and these increases are only now being passed on to shoppers.

There’s also what experts call “sticky prices” – once prices go up, they don’t always come back down quickly. Businesses, having faced years of tight margins, are often reluctant to lower them again.

And finally, the way inflation is measured means food increases can be hidden. The overall inflation figure covers a wide range of goods and services, including clothing and travel. When some of those prices stay flat or even fall, they can mask the fact that food is still rising.

The result is that families across Renfrewshire are feeling the squeeze at the checkout, even while the national picture looks steadier. For households on lower incomes, the impact is especially tough because food takes up a bigger share of their weekly budget.

Economists warn that food prices may rise further before easing later in the year. Until then, many people will continue to feel that their money simply doesn’t go as far when it comes to the weekly shop.

Headline photo credit: Donauwood / Pixabay