Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Food prices could jump by 10% this year, M&S chairman warns

Archie Norman said food inflation could be up to 10% this year (M&S/PA)
Archie Norman said food inflation could be up to 10% this year (M&S/PA)

Food prices could soar by as much as 10% this year, the chairman of Marks & Spencer (M&S) has warned.

The warning comes a day after Andrew Bailey, Governor of the Bank of England, warned that households could witness an “apocalyptic” shock from rampant food inflation.

Archie Norman, who has chaired M&S since 2017 and was previously the boss of Asda, said food prices would increase further during the rest of the year.

“It’s very negative for consumer discretionary income but it’s perhaps not apocalyptic,” he told BBC Radio 4’s Today programme.

“It wouldn’t be surprising to see food price inflation over the course of the year running towards eight per cent to 10%.

“But we don’t know that yet because it runs through the year – some has run through now but there is quite a lot still to come.”

Marks and Spencer financials
The M&S chairman said the company has witnessed significant rises in wheat and oil prices following the invasion of Ukraine (M&S/PA)

Analysts have predicted that overall inflation could rise sharply to 9.1% for April, when the latest official data is unveiled by the Office for National Statistics (ONS) on Wednesday.

The ONS reported 5.9% food inflation in March and this is expected to have accelerated last month.

The supermarket executive, who was also previously a Conservative MP, said grocers have had to pass some cost inflation onto customers but said spending has been bolstered by customers’ savings built up during the pandemic.

Mr Norman said: “What’s happening is global prices are rising, it’s not to do with UK food so much as the effect of freight costs, wheat prices, oil and energy prices knocking onto almost everything.

“As a consequence, all food retailers in the UK are – because we operate on very thin margins – going to have to reluctantly allow some food price inflation to run through the system.

“At the moment, UK spending is pretty good because customers still have quite a lot of stored-up savings.

“The crunch is not going to be now, it is going to be in the autumn after people have come back from their holidays, spent their money and there is nothing left in the kitty.”

Meanwhile, the boss of Bidfood, one of the UK’s largest food wholesalers, said schools may have to reduce portion sizes for children’s meals.

Andrew Selley told the BBC: “The situation is going to lead to some difficult decisions for school caterers.

“Either they are going to serve smaller portions or use cheaper ingredients, which is not going to be good for children.”

He added that baked goods are currently up to 30% more expensive due to rising wheat prices, which are also due to feed into pasta, eggs and chicken.