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UK Grocery Price Rises Of Up To 80%!

Posted on 20th April 2023

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According to this report on The Guardian, prices in UK supermarkets have increased by up to 80% in the last year.

Unfortunately the Guardian doesn't analyse the causes, but hints that the government is somehow to blame. I, however, have a slightly different perspective.

Price increases are generally a result of shortages, and there have been a number of these in recent months. Also, it is not just Britain that is effected.

Grocery prices have increased in Germany and across continental Europe, and in the USA, although there is the Brexit effect to consider. There are no longer any real local markets for produce; everything is shipped around the world, so shortages and price rises impact everyone. There have been well reported shortages of salad vegetables (grown under glass) due to unusual winter weather in Spain, and of course, during such shortages producers choose to export to countries which are easier to export to (i.e. not the UK). This explains the increase of 142% in the UK price of tomatoes since 2019; it is reasonable to assume that tomato prices will fall as the 2023 growing season gets into full swing.

It should also be remembered that there is a shortage of energy, as a result of sanctions against Russia, due to the war in Ukraine. Energy is used to heat and irrigate greenhouse crops, and is also used to ship the crops to their end markets, so more expensive energy is pushing up the price of all groceries.

There is also an increasing demand for goods produced more environmentally, demonstrated by the increased sales of organic food. This inevitably drives up prices. Everyone always says that they understand and accept that being more environmental will increase prices; until, that is, their supermarket bills get bigger. Time to "man up" and "walk the talk".