“The cost of basic foodstuffs could be about to rocket as Europe’s recent heatwave pushes up the price of everything from carrots and strawberries to butter and bacon.
Between March and July the farm gate prices of carrots rose 80 per cent, while strawberries increased by 28 per cent and the cost of butter by 24 per cent, according to a report from the Centre for Economics and Business Research (CEBR).
A harsh winter followed by a hotter than average summer has had a marked impact on domestic food production. Dairy production fell for 11 weeks in a row as the hot weather took its toll on grass growth, driving up butter prices.
Farmers have been forced to use back-up supplies to keep their herds fed, which is expected to push up feed costs and the price of red meat over the winter. Government research calculates that sharp rises in the prices of commodities can take 18 months to work through into food price inflation.
“With the wholesale prices of many crops already rising very significantly and meat prices set to climb in coming months, it seems likely that wholefood prices will rise at least 5 per cent,” the CEBR said. It estimates that over time the hot weather could add as much as £45 million a week to the UK’s food shopping bill, or £7.15 per month.”
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