Rising Inflation Claims Coffee as Its Next Victim
Rising inflation has become a headache for everyone across the board.
In the United Kingdom (UK), food inflation rose 12.4% up from 11.6% in October, according to the British Retail Consortium in a report posted by the BBC.
The next victim on inflation's list? Coffee.
Coffee consumption, which has hit a two-decade high, helps many people tackle their days with alertness and humility. Although this is among a growing list of products affected by inflation, it's not alone in causing grief.
Further still, Helen Dickinson, a boss at the BRC, warned that winter looked "increasingly bleak" as prices continue to fluctuate.
Within the UK specifically, the war in Ukraine and the COVID-19 pandemic are a huge part of the problem. These situations cause food, energy, and fuel to hike in prices. The consumers and businesses within the UK have felt the weight.
No End in Sight to Rising Inflation
The BRC showed that overall annual inflation accelerated to 7.4% in November, up from 6.6% in October. This hike is the fastest the index has seen since it began in 2005.
"Food prices have continued to soar, especially for meat, eggs and dairy, which have been hit by rocketing energy costs, and rising costs of animal feed and transport," said Dickinson. "Coffee prices also shot up last month as high input costs filtered through the price tags."
The rise in prices could also affect Christmas gifting this year. Gifts are more expensive, and presents from the sports and recreation equipment departments have seen particularly high increases.
Although she noted that prices could start to ease back next year, Dickinson also said, "Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritize the essentials."
Shoppers, according to researcher Mike Watkins of NielsinIQ, will be managing their Christmas budgets "more closely than at any time since the start of the cost-of-living crisis."
Retailers have moved to offer seasonal savings and price cuts to help encourage shoppers to spend with them.
Besides coffee, basics such as milk, cheese and eggs have also grown at their fastest rate in 45 years.
