UK food prices expected to rise through 2027 due to drought

The Food and Drink Federation (FDF) has warned that UK grocery prices are expected to rise into 2027 due to severe drought and heatwaves. One of the hottest and driest summers on record has reduced the supply of various crops, including broccoli, cherries, and various fruits and vegetables.

In addition to direct crop shortages, poor grain harvests are increasing the cost of animal feed, which may lead to higher meat prices. FDF officials noted that while the supply chain has attempted to absorb costs, the combination of extreme weather, geopolitical tensions in Ukraine and Iran, and regulatory burdens makes price increases “inevitable.”

Dr. Liliana Danila, chief economist at the FDF, highlighted that heatwaves and droughts across much of Europe are also impacting ingredient supplies, increasing competition for limited resources. This follows previous warnings from the Bank of England regarding the impact of the El Niño phenomenon on global agricultural conditions.