Supermarket food prices: Report warns of Iran war’s prolonged impact on grocery bills

British households are facing persistently high prices for essential food items, with a new report attributing this trend to ongoing global events such as the Middle East crisis and the El Nino weather pattern. Analysis from the Energy and Climate Intelligence Unit shows food prices “shoot up like rockets but drift down like feathers”, meaning consumers face elevated grocery bills long after initial disruptions. The think tank's findings, based on over three decades of UK data, indicate that shelf prices recover only 1 per cent of their original increase after six months and just 7 per cent after two years. The research shows that only 35 per cent of the initial affordability impact is unwound within two years when adjusted for wages. Experts warn that food prices are on track to be 50 per cent higher by November compared to mid-2021 levels, with climate change and energy volatility expected to make shocks more frequent and severe.