(MENAFN) Food producers in Europe are competing with high energy costs, with that rise quickly felt in the pockets of customers struggling with a cost-of-living crisis, according to Bloomberg on Tuesday.
In line with the report, referring to a Bank of England prediction, a third of UK families are set to spend at least 10 percent of profits on energy, and currently rising grocery prices are causing food poverty.
“It is the domino effect that has happened with us having to take a huge increase on energy,” Ryan Peters, managing director of Brioche Pasquier UK, told the outlet. “We have to try and raise our prices to retailers a little bit, and unfortunately that goes on to consumers,” he went on.
Kona Haque, chief of research for commodities trader ED&F Man, cautioned: “I think the worst is still to come as energy prices rise. This winter will be a game changer and processing costs will likely go up.”
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