This is an article by Liz Barclay – copyright – click here for the full article https://business111.com/news
Bread, milk, vegetables, meat and even biscuits are all heading in one direction: up. Heatwaves, drought and failing harvests are driving prices higher across the world, and Britain is about to feel the effects. As crops fail and imports become more expensive, families already struggling with the cost of living face another squeeze.
The global picture
Food prices are rising again, with extreme weather the main culprit.
Heatwaves across France, Spain, Italy and Eastern Europe have damaged wheat, maize and vegetable crops, while olive oil, fruit and cereals have all become scarcer. At the same time, drought has hit the American Midwest, Canada and parts of South America, reducing supplies even further.
When several major producers suffer losses at once, world prices rise rapidly. The United Nations food price index has already begun climbing again, with cereals, vegetable oils, dairy products, meat and sugar all becoming more expensive.
The UK picture
Britain faces lower yields, smaller harvests and growing water shortages. Farmers warn that potatoes, fruit and vegetables have all been affected by the heat.
Livestock farmers are under pressure as grasslands dry up and winter feed supplies are used earlier than expected. The result is a double blow: domestic production is falling just as imported food becomes more expensive.
What shoppers can expect
Staple foods such as bread, cereals, vegetables and dairy products are likely to become more expensive. Imported goods will become more vulnerable to global price swings, leading to fewer bargains and more sudden price rises.
Processed foods, including biscuits, crisps and ready meals, will also become more costly because the ingredients used to make them are increasing in price.
Retailers face higher refrigeration and transport costs during heatwaves, and those costs will eventually be passed on to customers.
Who will be hardest hit?
Low-income households, which already spend a greater share of their income on food, will have the fewest options. Small shops will struggle with rising wholesale costs, while restaurants, cafés and takeaways will face pressure to increase prices.
More inflation
The outlook is worrying. If heavy rain follows prolonged drought, hardened ground may struggle to absorb the water, causing flooding and damaging crops even further.
Global food prices are climbing because extreme weather is reducing harvests around the world. Britain is producing less food while paying more for imports. The result is likely to be higher prices, fewer offers and more pressure on household budgets.
This is climate-driven inflation, and it may only be the beginning.
This is an article by Liz Barclay – copyright – click here for the full article https://business111.com/news
If you are a small business, self employed or freelance -register to get free 24/7 help for your business – @business111com 
Discover more from PeopleMatter.TV
Subscribe to get the latest posts sent to your email.