BANK OF ENGLAND RATE CHANGE: FOOD INDUSTRY RESPONSE

Bank of England rate change: Food industry response. Comment from the Food and Drink Federation in response to the Bank of England’s rate change and references to food and drink inflation.

Karen Betts, Chief Executive, The Food and Drink Federation (FDF), said:

“Food and drink inflation is rising noticeably again and currently this shows no signs of easing.  Global energy and commodity prices are rising once more, and this comes on top of new taxes and regulatory costs, like higher employer National Insurance Contributions and this year’s new packaging tax. Food and drink manufacturers try to absorb as many of these costs as possible to protect shoppers, but the fact is that making food and drink in the UK is more and more expensive to do.

“It’s critical that government takes decisive action to cut red tape and promote growth and investment across the food and drink sector, including ensuring there are no further cost increases to businesses in our sector in the autumn Budget.”

Background

• Production costs rose by an average of 4.5% over a year to March 2025. Over a fifth (22%) of food and drink manufacturers having seen costs increase by 10% or more (FDF Q1 State of Industry report)