{"id":506941,"date":"2026-04-01T10:54:09","date_gmt":"2026-04-01T10:54:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/506941\/"},"modified":"2026-04-01T10:54:09","modified_gmt":"2026-04-01T10:54:09","slug":"uk-food-inflation-may-rise-by-10-due-to-iran-war","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/506941\/","title":{"rendered":"UK Food Inflation May Rise By 10% Due To Iran War"},"content":{"rendered":"

\"Uk<\/a><\/p>\n

Food prices and inflation in the UK will be rising by almost 10% by the end of this year due to the Iran war, the country\u2019s food and drink manufacturers\u2019 lobby warned on Wednesday,<\/a> around three times faster than its previous forecast.<\/p>\n

The Food and Drink Federation (FDF) said food and non-alcoholic drink inflation, previously expected to ease to 3.2% by December 2026, would now climb above 9% by that date.<\/p>\n

The FDF, which represents about 12,000 UK food and drink manufacturers, said its forecast assumed Iran\u2019s vital Strait of Hormuz shipping route would reopen to cargo traffic within two to three weeks and that most key facilities, including oil, gas, and fertiliser sites, would return to normal within a year.<\/p>\n

Economic Risks<\/p>\n

It suggested that food inflation could rise even further if disruption lasted longer or energy supplies were more severely affected \u2013 highlighting the economic risks from the conflict that are prompting central banks to abandon rate cuts and governments to consider ways to help businesses and consumers.<\/p>\n

The FDF said the industry was unusually exposed to oil and gas market shocks because of its high energy use and reliance on complex global supply chains.<\/p>\n

While many medium-sized and larger companies hedge energy price movements through a mix of contract lengths, the FDF said they were bracing for sharp increases as contracts come up for renewal. Smaller producers, which typically buy energy on spot markets, are already experiencing cost spikes.<\/p>\n

\u201cDespite companies\u2019 best efforts not to pass price increases on, it\u2019s clear that food inflation is going to rise in the months ahead,\u201d Liliana Danila, FDF chief economist, said.<\/p>\n

Higher Energy Prices<\/p>\n

The first clear impact of the war on UK household costs has been seen at fuel pumps, where higher energy prices<\/a> have already pushed up costs for drivers.<\/p>\n

Farmers have also warned of higher food prices from next month, starting with tomatoes, cucumbers, and peppers grown in heated greenhouses.<\/p>\n

UK grocery inflation held at 4.3% in the four weeks to March 22, research firm Worldpanel by Numerator reported on Tuesday.<\/p>\n

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