The cost of goods is going up around the world by up to 10%, and if this is passed on to consumers then we all face the prospect of paying much more for our food
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Consumers could soon pay at least £14.63 extra for their weekly ‘big shop’ if supermarkets pass on looming price rises.
Food and goods could get more expensive because of a supply chain crisis limiting volumes of stock around the world.
Today the boss of Heinz, Miguel Patricio, said families would have to get used to higher food prices.
He admitted the brand is “raising the prices” of products including ketchup and baked beans due to a global import issues.
Prices could rise by up to 10% by January, according to David Sables, of Sentinel Management Consultants.
“Shelf prices will go up 5%, but it won’t be enough,” Sables told The Express.
“Retailers will communicate an additional 4 to 5% price increase which will go through in January.”
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If this happens – and is passed on across all products evenly – then a typical ‘big shop’ would increase in price by at least £14.63.
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Asda came out on top for the price of a shopping trolley filled with 79 common items, costing £146.36 in September.
A 10% price rise would mean this cost increasing to £160.99.
The most pricy supermarket last month was Waitrose, where a similar trolley of goods cost £168.02.
This could rise by £16.80 if the 10% food price hike happens.
Which? compared the price of branded items such as Andrex toilet paper, Colgate toothpaste, Tropicana orange juice and McVitie’s digestive biscuits with own-label products, including mixed peppers and semi-skimmed milk.
Patricio said that consumers will have to get used to spending more for food due to the world’s rising population, and a lack of land to grow produce on.
But he urged firms to take on spiralling costs. Speaking to the BBC, he said: “I think it’s up to us and to the industry and to the other companies to try to minimise these price increases.”
When asked to explain why the rises were occurring, Patricio said: “Specifically in the UK, [it is due to] the lack of truck drivers.
“In (the) US, logistic costs also increased substantially, and there’s a shortage of labour in certain areas of the economy.”
He said high inflation “across the board” unlike in previous years, is worsening the problem. In the UK, inflation – the cost of living – rose 3.2% in August, with warnings it could spiral to 4% by Christmas.
Kona Haque, head of research at the agricultural commodities firm ED&F Man, told the broadcaster: “Whether it’s corn, sugar, coffee, soybeans, palm oil, you name it, all of these basic food commodities have been rising.”
She said major food producers like Kraft Heinz, Nestle and PepsiCo “will most likely have to pass that cost on to consumers”.