Food inflation could hit double digits because prices are unsustainably low, “Chicken King” Ranjit Boparan has warned.
It comes after dairy company Arla revealed it had been rocked by a triple whammy of inflation costs.
Boparan, who owns the supermarket supplier 2 Sisters, said: “Food is too cheap, there’s no point avoiding the issue.
“In relative terms, a chicken today is cheaper to buy than it was 20 years ago.
“How can it be right that a whole chicken costs less than a pint of beer?”
He added that we had entered a “different world… where the shopper pays more”.
It comes after data released on Monday showed that food prices had increased by 1.7 per cent over September.
Boparan argued that higher prices were inevitable because of inflationary pressures throughout the supply chain.
The cost of animal feed has grown by 15 per cent, energy expenses are up, while wages for factory and farm workers and drivers have soared.
Packaging prices have risen by a fifth in the last six months.
2 Sisters, the UK’s largest producer of chickens, is reportedly facing a 500 per cent increase in CO2 costs, which is used to stun animals before slaughter.
It expects a 16 per cent rise in total running costs year-on-year.
Boparan said he had realised that the government “in reality can’t fix all the problems, nor can it control inflation”.