Food inflation in the UK is likely to peak at 15% this summer and remain at high levels into next year, the Institute of Grocery Distribution (IGD) has said.
According to the grocery industry researcher, this will result in the most vulnerable households in Britain by the increase in food and drink prices.
This comes as Britains official inflation rate hit a 40-year high of 9% in April and is predicted to surpass 10% later this year, when regulated energy tariffs are due to jump by a further 40%.
In a bid to tackle inflation, the Bank of England is reportedly set to raise interest rates on Thursday for the fifth time since December.
However, this will result in higher mortgage payments for households.
According to the research by IGD, the average monthly spend on groceries for a typical family of four would reach £439 in January next year, an increase from £396 in the same period in 2022.
IGD attributes the increase to several factors including the impact of the conflict in Ukraine, supply chain issues and impacts from Brexit.
Groceries including meat, fish, dairy, fruit and vegetables are likely to see a spike in prices in the short term.
“From our research, we’re unlikely to see the cost of living pressures easing anytime soon,” IGD chief economist James Walton said.
“We are already seeing households skipping meals – a clear indictor of food stress.”