Four in five Britons are worried that the conflict with Iran will drive up food prices, according to a new Opinium poll. The survey of 2,000 people found that 80% are concerned about rising grocery costs, while 73% expect other products to become more expensive as retailers pass on higher costs.
The blockade of the Strait of Hormuz has already pushed up oil and gas prices, caused a crisis in the global fertiliser industry, and increased shipping and distribution costs. The Bank of England forecasts food inflation could reach 7% by the end of the year due to higher fertiliser, energy and transport costs.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), said the war is driving up costs across the supply chain. She urged the government to remove non-commodity energy costs for retailers, warning that “the window to act is closing”. Germany has already reduced electricity costs for businesses, and EU leaders are discussing similar measures.
Supermarket bosses met Chancellor Rachel Reeves in early April to discuss the impact on the cost of living. Simon Roberts, chief executive of Sainsbury’s, said limiting energy prices for retailers is “the single biggest thing the government should do to keep prices down”.
A government spokesperson said: “We are acting to protect people from any potential increases in food prices. We have already suspended select food tariffs and continue to work closely with the sector to keep households bills down.”
