Downward pressure on the economy is likely to keep a lid on UK retail food price inflation, which will peak in the first few months of this year at around 6-7%, and then decline slowly, according to European Food and Farming Partnerships (EFFP).
Union leaders failed to agree a pay deal for staff at Adams Foods' cheese packing plant in Leek on Monday, but remain hopeful of agreeing a package with management that will avert the need for strike action.
Food manufacturers will be under pressure to absorb higher raw material and energy costs this year to ensure their products remain affordable as household budgets are squeezed, English Food and Farming Partnerships (EFFP) has warned.
