Food: Prices

(asked on 20th October 2021) - View Source

Question to the Department for Environment, Food and Rural Affairs:

To ask Her Majesty's Government what assessment they have made, if any, of the impact of the shortage of lorry drivers on food prices.


Answered by
Lord Benyon Portrait
Lord Benyon
Minister of State (Foreign, Commonwealth and Development Office)
This question was answered on 3rd November 2021

The Government monitors consumer food prices using the Consumer Prices Index (including Housing Costs) CPIH. The latest published statistics show annual food and drink inflation as 0.8 per cent in the year to September 2021, up from 0.3 per cent in the year to August 2021. The CPIH month-on-month food and drink inflation rate was -0.2 per cent between August 2021 and September 2021, down from 1.1 per cent between July 2021 and August 2021. The month-on-month rate is generally more variable than the annual rate.

This small increase in the annual rate will have been driven by a number of factors. Our research shows that the main drivers of consumer food prices are domestic farmgate prices; domestic manufacturing costs; domestic labour costs, import prices and currency exchange rates. Transport and distribution costs are a relatively small factor in influencing consumer food prices, so the shortage of lorry drivers and any consequential increase in the pay of lorry drivers alone, would not be expected to significantly increase food prices.

Most food sectors are accustomed to fluctuations in supply chain costs from these factors and food retailers also compete on price so these increases in supply chain costs do not necessarily translate into consumer price rises.

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