Cost of living crisis to enter ‘new phase’ with food price ‘shock’ warning

Food prices will soon overtake energy bills as the cost of living crisis enters a “new phase”, a worrying new study warns today.

Households will soon be paying an average of £1,000 more on food each year compared to before the Covid pandemic, experts fear – compared to £900 more on energy.

Food inflation has already reached a 50 year high this year, and researchers from the Resolution Foundation think tank say it will get even worse in the coming months.

Lower income families will be worst hit, as they often already buy cheaper products so will have less space for savings.

Economist Lalitha Try warned that politicians do not seem to have grasped how serious the problem is.

She said: “Everyone realises food prices are rising, but it’s less clear that the scale of the increases has been understood in Westminster.

“This summer the food price shock to family finances is set to overtake that from energy bills. What remains consistent is that those on low-to-middle incomes are worst affected.

“The cost of living crisis isn’t ending, it’s just entering a new phase.”