UK food prices remain persistently high after shocks, new analysis finds
By
@ECIU_UK
Fresh out the oven, still warm. Top of the tray.
Summary
New analysis from the Energy and Climate Intelligence Unit (ECIU) reveals that food prices rise sharply during major shocks but fall only slowly and partially afterward, a phenomenon called the "rocket and feathers" effect. Based on over 30 years of UK data, the report shows shelf prices drop just 1% of the original rise after six months, 5% after a year, and 7% after two years. In wage-adjusted terms, only about a third (35%) of the affordability shock unwinds after two years. The report warns that household staples like bread and pasta will become less affordable for the foreseeable future due to compounding shocks including the Iran war and a 'super' El Niño event.
Key quotes
· 3 pulledOn average shelf-prices fall just 1% of the original rise after six months, 5% after a year and 7% after two years.
In wage-adjusted terms, only around a third (35%) of the affordability shock had unwound after two years.
This 'rocket and feathers' effect suggests food prices rise sharply during shocks but descend slowly and partially.
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