UK's Jeremy Hunt meets with food firms as British inflation roars

British chancellor Jeremy Hunt said: “High food prices are proving stubborn so we need to understand what’s driving that.”

British chancellor of the exchequer Jeremy Hunt is meeting with food manufacturers to raise concerns about high food prices and discuss ways to ease the pressure on UK households.

Britain’s finance minister also met with the British regulator, the Competition and Markets Authority, or CMA, to discuss the watchdog’s probes into the fuel and grocery markets. 

The British government is trying to find ways to allay the impact of soaring prices, with food inflation — currently running at more than 19% — a particular area of concern, especially for low-income households. Mr Hunt will ask manufacturers to look at ways they can help consumers. 

“High food prices are proving stubborn so we need to understand what’s driving that,” he said in the statement. “I’m asking industry to work with us as we halve inflation, to help ease the pressure on household budgets.” 

The engagement with the CMA and manufacturers follows a flurry of UK government activity in the food sector, including a meeting earlier this month between supermarket chiefs, and last week’s Farm to Fork summit, during which prime minister Rishi Sunak announced he’ll allow an extra 10,000 temporary visas for agricultural workers next year.

One area in which the British government is looking to make reforms is around the unit pricing of foods, to make it easier for consumers to compare products. 

Economic growth

Meanwhile, the British will grow faster than Germany this year and avoid a recession, the International Monetary Fund, or IMF, said, after sharply upgrading its forecast on the back of strong household spending and better relations with the EU. 

Falling energy prices will also help Britain expand 0.4% this year, the IMF said in its regular health check on the UK economy. That’s up from the 0.3% contraction the fund projected just last month, and which will lift the UK off the bottom of the G7 league table. 

However, the global economic watchdog warned households that interest rates may need to rise further and stay high to ensure inflation is dealt with properly. The prospect of faster growth will raise hopes in Mr Sunak’s government that it can head into an expected general election next year offering tax cuts. 

The ruling Conservatives trail the British Labour Party by a double-digit margin in the polls as the country grapples with soaring inflation, weak growth, public sector strikes and rising taxes. Mr Sunak is trying to restore the government’s reputation for economic competence. 

Bloomberg