Business costs keeping food and drink prices high

The food and drink industry has said rising business costs are the reason why the abolition of the Groceries Order has not reduced prices.

The Government and several large retailers said earlier this year that removing the ban on below-cost selling would bring down grocery prices for households across the country.

However, prices have not fallen since the ban was abolished.

The food and drink sector of the employers' body IBEC said today that the reason for this was rising business costs, with energy costs alone going up by 50% in the past 18 months.