Inflation: Food price rises are 'terrifying' warns industry

Food and drink firms are seeing "terrifying" price rises says the sector trade body, which has warned about a knock-on effect for consumers.

Food and Drink Federation boss Ian Wright told MPs inflation is running between 14%-18% for hospitality firms.

The price rises for food firms' ingredients would lead to consumer price rises, he said and described the situation as concerning.

The UK's rate of inflation was 3.2% in August and is expected to rise further.

Bank of England governor Andrew Bailey recently warned it "will have to act", suggesting that UK interest rates may soon rise from the historic low of 0.1%.

Mr Wright told MPs on the Business, Energy and Industrial Strategy select committee: "Inflation is a bigger scourge than anything else because it discriminates against the poor."

The Office for National Statistics will publish the latest inflation figures for September on Wednesday. It is expected to rise further above the Bank of England's target of 2% for longer than previously thought.

Make UK, the manufacturers' organisation, said that inflation was becoming "baked in" among its members.

Stephen Phipson, chief executive at Make UK, told MPs that while there was a welcome rise in demand, many manufacturers are looking at 30% to 40% average increases in material costs.

"When people are able to get hold of materials they are passing those costs on which does imply to us that inflation is more or less baked in at this stage now," he said.

"This is not a transitory inflationary demand we are seeing really serious issues now in terms of price increases."