Friday, August 5, 2022

Rising inflation drives up food prices, adding 23% to the cost of a ham sandwich

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After the humble ham sandwich, the cost of which has risen the most since June 2021, came a cup of coffee – up 18.1 percent

The cost of a ham sandwich has risen 22.9 percent, according to an analysis of Bureau of National Statistics data by private investor platform Interactive Investor.

Britain’s favorite dishes have skyrocketed by as much as 23 per cent over the past year as food inflation soars, new research has found.

It’s painted a picture of how inflation has affected some of the nation’s most popular foods.

After the humble ham sandwich, which has risen the most in price since June 2021, came a cup of coffee in second place (up 18.1 percent), followed by a roast chicken dinner (up 14.8 percent).

Next was a cottage pie (up 14.6 percent), with the other items completing the shopping basket including sausage and puree (up 12.7 percent), a cheese sandwich (up 12 percent), a cup of tea (11.5 percent). ). ), a steak pie (up 7.5 percent) and homemade fish and chips (up 6.7 percent).

Alice Guy, Interactive Investor’s personal finance expert, narrates I The cost of each dish or drink was calculated using basic recipes.

She explained, “For example, a roast chicken contains chicken, potatoes, carrots and cauliflower, while a cottage pie contains ground beef and potatoes.”

She touched on why prices have risen so much, adding, “Meat prices have increased significantly due to supply chain issues, increased production costs and labor shortages that have pushed up costs throughout the supply chain.”

interactive investor also compared how much ingredients have increased since March 2020.

It showed that a ham sandwich is up 24.6 percent since March 2020, showing that most of the recent inflation is actually due to last year.

Likewise, inflation for a roast chicken has risen 16 percent since March 2020 — just slightly above the annual rate of inflation.

Overall, food prices are rocketing amid the cost-of-living crisis, with food inflation accelerating to 7 percent in July from 5.6 percent in June.

According to the British Retail Consortium, this was the highest rate of inflation since May 2009. The cost of fresh food has been pushed up by rising fees for fertiliser, feed and transport.

Helen Dickinson, chief executive of the British Retail Consortium, said: “Retailers are doing everything they can to absorb these rising costs as much as possible and are looking to improve efficiency in their businesses and their supply chain.

“Nonetheless, households and businesses need to prepare for a difficult period as inflationary pressures hit.”

Looking further back, interactive investor has also tracked the cost of key ingredients in some of the country’s most popular dishes since 1971 (since inflation dates for most of those ingredients began to be recorded).

Since 1971, for example, the price of a ham sandwich has increased almost 17 times and the price of a cheese sandwich has increased almost 15 times. Also, the price of a cup of coffee is 14 times higher than in 1971.

Meanwhile, the British favorite – cottage pie – has risen to a much more modest level, having only doubled since records for the meal began in 1994. Similarly, Banger and Mash have only increased 2.4x since 1994.

Overall, the researchers found that food inflation for most items has been at very low levels or even deflationary for many years.

A large cottage pie cost over £10 in 2013, compared to £8.23 now. Likewise, a homemade cheddar cheese sandwich cost about 55p in 2011, compared to 49p now.

Researchers say individual ingredients paint a more detailed picture of what happened and what triggered price increases.

For example, the cost of meat and fish has risen faster than potatoes, meaning that buying meat and fish is comparatively more expensive and buying potatoes cheaper than around 40 years ago.

Interactive Investor’s findings come as Brits were shown to be spending more on groceries than ever before.

interactive investor Ms Guy concludes: “Food inflation has been crazy over the last year but it’s important to put this in context so we don’t panic consumers. Although annual figures seem high over 10 years, food inflation is actually much more reasonable.

“For example, the inflation for a cup of coffee is 18.1 percent this year but has averaged just 2 percent over the past 10 years, and the cost of a roast chicken dinner, a cottage pie and a cheese sandwich is in recent years even dropped 10 years.

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