Food prices have risen sharply across the globe, with the UN reporting a 2.4% increase in its food commodity price index for March, the second consecutive monthly rise. The conflict in the Middle East has been blamed for driving up energy and freight costs, with vegetable oil and sugar prices surging by 5% and 7% respectively.
In the UK, consumers are likely to see higher prices for salad vegetables such as tomatoes, peppers and cucumbers within the next six weeks. The British Tomato Growers’ Association has warned that rising gas costs for heating glasshouses are pushing up production expenses, with the price of tomatoes expected to increase significantly.
The Food and Drink Federation, which represents 12,000 UK food and drink manufacturers, now predicts food prices will rise by at least 9% by the end of 2026, almost tripling its pre-conflict forecast of 3.2%. That forecast assumes the Strait of Hormuz—a key route for fertiliser shipments—will reopen within weeks, but this remains uncertain.
Chancellor Rachel Reeves has met with major retailers including Tesco, Sainsbury’s, and Aldi to discuss easing the cost of living and strengthening supply chains. Meanwhile, a Bank of England survey of over 2,000 chief financial officers found they expect to raise prices by an average of 3.7% over the coming year, up from 3.4% in February.
