Food price inflation peaked at 19.2pc in March, a 45-year high, according to the Office for National Statistics (ONS). It has eased sharply in recent months, but remained stubbornly high at 17.3pc in June.
Retailers told the Bank that food prices were still expected to rise at an annual pace of “around 10pc or slightly lower” by the end of 2023.
Barret Kupelian, a senior economist at PwC, said: “The bad news is that even though food inflation is expected to moderate, food prices will remain high and not decrease. This means that the era of cheap food has probably come to an end in the UK.”
Food bills are still 10 to 12% of household income. As opposed to the much higher levels of only a few decades back.
This just isn’t the end of cheap food at all.