Food prices across the UK have seen a sharp increase in March, primarily driven by escalating energy costs resulting from the ongoing Middle East conflict, according to the United Nations. The most significant price hikes were observed in vegetable oil and sugar, which rose by five per cent and seven per cent respectively.
The UN Food and Agriculture Organization’s food commodity price index recorded a 2.4 per cent increase in March, marking the second consecutive month of growth. This rise spans across all major food commodity groups including cereals, meat, dairy, vegetable oils, and sugar, reflecting both market fundamentals and inflationary pressures from higher energy prices.
Professor Tim Lang of City St George’s, University of London, warns of the uncertain medium-term impact of this energy shock on food prices. “Britain and the world have yet to experience the full effects of this massive disruption in the global energy system,” he noted. Industry experts are beginning to predict that food price inflation in England might potentially double in the near future.
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The National Farmers’ Union president, Tom Bradshaw, highlighted the mounting challenges facing UK farmers. The disruption to global oil and gas markets has significantly increased costs for fuel and fertilisers, often with little advance notice. This financial strain extends to arable, livestock, and dairy farms.
Horticulture businesses are particularly hard-hit, grappling with rising glasshouse heating costs alongside sharp increases in energy standing charges.
Additionally, the conflict is affecting imports from Iran, a key supplier of pistachios and saffron. Former government food adviser Henry Dimbleby explained that Iran produces approximately 85-90% of the world’s saffron and is the largest exporter of pistachio kernels, responsible for about 70% of global kernel exports and 20% of all nuts. Supply disruptions from this region threaten to further strain global food prices.