Britain has been forewarned that food prices, which are already surging, might rise much more if Russia cuts off grain exports from Ukraine.
When Russia withdrew from a historic agreement that allowed the required supplies to be made across the Black Sea, citing “drone attacks” on its ships in Crimea, exports from Ukraine were halted.
President Biden referred to the conduct as “quite abhorrent,” while Secretary of State Antony Blinken stated Moscow was “weaponizing food.” Ukraine, one of the largest grain exporters in the world, labeled Russia’s arguments a “false excuse.”
Turkey and the UN helped broker an agreement in July between Russia and Ukraine to permit grain supplies in an effort to lessen the worldwide food crisis that the conflict has caused.
More than nine million tonnes of grain from Ukraine could previously be shipped under the agreement, which was slated to expire on November 19.
The obstruction raises the already growing price of products made from wheat in Europe. Inflation-related price rises have affected almost all bread and pasta products in the UK, with some witnessing increases as high as 63.6 percent.
The price of a loaf of Hovis wholemeal thick bread jumped this month from £1.05 to £1.41 (34.3%), Sainsbury’s toastie thick white bread went from 55 to 80p (45.5%), and Village Bakery increased from 49 to 69p, according to the most current statistics from the Grocery Price Index (40.8 per cent).
According to data released this month, prices for staples including milk, butter, cheese, bread, and pork increased by as much as 42% in September, the highest rates since 1980.
Today, millions of people regularly pay 20 pence more for two pints of milk than they did a year ago, 30 pence more for a packet of pasta, 30 pence more for six free-range eggs, and 40 pence more for a mature block of cheddar.
According to statistics from the Office for National Statistics (ONS), as well as energy costs, the cost of every food and drink item has climbed since last year.
In addition, prices are rising for other goods and services as well as food during one of the worst crises in living standards in recent memory.
According to the ONS, the cost of women’s haircuts has grown by 6.1%, the cost of children’s shoes has increased by 11.5%, the cost of women’s clothing has increased by 8.4%, and the cost of household items has increased by 14.1%.
After a slight dip last month, headline inflation “returned to the level recorded earlier in the summer,” according to Darren Morgan, director of economic statistics for the ONS.
“The rise was brought on by further price increases in the food industry, which had its largest annual increase in more than 40 years. Additionally, hotel prices increased after falling at same time last year.
With airline fares falling more than usual for this time of year and used car prices rising less quickly than the notable rises seen last year, these increases were partly offset by the ongoing decreases in the price of fuel.
Business expenditures are beginning to rise more gently, the study noted, “but still climbing at a historically high rate, with crude oil prices actually down in September.”
I understand that consumers throughout the country are struggling with rising expenses and higher energy bills, Mr. Hunt added. This administration will prioritize helping the most vulnerable while also achieving general economic stability and fostering long-term prosperity that benefits everyone.
“We have taken decisive steps to safeguard consumers and companies from substantial rises in their energy bills this winter,” says the government, whose energy price guarantee is capping peak inflation.
A technology business, Yapily, saw a spike in customers using financial tools to augment their income as family budgets are being squeezed as the UK’s inflation rate touched another 40-year high of 10.1% last month.
Over one-third of customers used credit cards for the first time in the last year, while 27% utilized “buy now, pay later” services and 18% went over their overdraft limits.
The survey found that companies are also exhibiting signs of altering their habits of spending and financial management, with 75% utilizing loans and business cards to control cash flow in the last year.
Many of the financial features, according to Yapily, are made possible by open banking, which enables users to examine all of their financial data in one place, including bills and different savings accounts.
The fintech company, whose customers include American Express and Intuit Quickbooks, said that not enough people are aware of how the infrastructure might help consumers save money and get more credit at lower rates.
“Our analysis reveals that businesses and consumers are seeking creative solutions to the cost-of-living dilemma,” said Stefano Vaccino, CEO and founder of Yapily.
“Open banking also enables customers to get better and more equal financial services at crucial times.
But until open banking is more understood and implemented, its capacity to mitigate the impact of this inflationary pressure will remain beyond the grasp of the people.