According to The Andersons Centre’s latest findings, agflation – the term coined to reflect inflation with regards to agricultural inputs – now stands at 18.7% annually. This is a lot higher than agricultural outputs (11.1%), which shows that UK agriculture continues to experience a cost-of-farming squeeze. The centre said that agflation continues to outpace general economic inflation (CPI) and food prices (CPI Food).
Although agflation remains higher than food prices, it is declining. According to The Andersons Centre, agflation peaked in July 2022 at 26.3%. However, the problems lays in the gap between ‘agflation’ for agricultural inputs and inflation regarding agricultural outputs – which is widening.
The International Monetary Fund’s (IMF’s) January World Economic Outlook predicts that 84% of countries are expected to have lower inflation in 2023 than 2022, and that global inflation is set to fall from 8.8% to 6.6%. And, also yesterday, Kantar said that UK grocery inflation is at its highest level since 2008, when it starting keeping tabs.