07 June 2023
Analysts say supply chains won't be as hard hit as feared.
FOOD prices in the UK have peaked and are likely to stabilise as the year progresses, a chief economist has predicted.
James Waltong, Chief Economist with supply chain and retail analysis provider, IGD, said: "Whilst it's clear that there are considerable global and UK-specific headwinds ahead, there is some light at the end of the tunnel, with food inflation expected to dissipate slowly during 2023."
For the potato industry, the rise in the cost of groceries generally, and the likelihood of snack items, many of which are potato-based, being one of the first 'luxuries' to be deleted from consumers' shopping lists, has raised concerns about how this would filter down the supply chain.
But analysts say most fears are ungrounded.
IRI has said shoppers often only make adjustments after making a purchase and realising its higher price, but would not return things because of the embarassment factor, while Kantar said consumers were generally absorbing the increases and continuing with their regular purchases, despite being unhappy with the pricing.