One pint of milk could soon cost £1, a supermarket boss suggested today.
Iceland managing director Richard Walker said “I don’t know” when the chain’s current 89p price for a pint will rise further.
He told the BBC “we work day and night to keep those prices as low as possible” but “it will get worse”.
The firm already does not make money on milk, he said, but “I’ve got cost prices currently on the table from big branded suppliers that we haven’t stomached yet as a business, let alone had to pass on to our customers.
“Coming into winter we’ve got heating, we’ve got fuel, we’ve got food inflation. Food insecurity is inevitably on the rise and it’s the households with kids that are most at risk.”
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Asked how soon a pint of milk will hit £1 the businessman, who wants to be a Conservative MP, replied: “I don’t know.
“But there’s a lot of external pressures from the war in Ukraine to commodity price inflation to fuel to labour shortages to fertiliser shortages and everything else in between.”
He admitted some products are “loss leaders that we have to sell because our customers are simply reliant on them.”
He also said businesses should accept low or no profits during the cost of living crisis.
And he appeared to back calls for free school meals to be extended to all kids on Universal Credit.
He said: “We’ve got 800,000 kids living in poverty who don’t qualify for free school meals.
“The easiest way to reach them is through the Universal Credit scheme but also through businesses doing what they can, because many of those children are kids of my Iceland customers.”
Millions of homeowners will be hit with new pain tomorrow when the Bank of England puts up interest rates, sending the cost of mortgages soaring further.
Figures today show food inflation already soared to a record 11.6% in October.
Even basics such as tea bags, milk and sugar all saw significant price rises, figures show.
Overall shop prices are now 6.6% higher than they were this time last year - also a record - but food inflation jumped well above September's 10.6% and the three-month average rate of 9.7%, according to the British Retail Consortium (BRC)-Nielsen Shop Price Index.
Fresh food prices are now 13.3% more than last October, up from 12.1% in September.
Non-food inflation accelerated to 4.1%, up from 3.3% in September.
BRC chief executive Helen Dickinson said: "It has been a difficult month for consumers who not only faced an increase in their energy bills, but also a more expensive shopping basket.
"Prices were pushed up because of the significant input cost pressures faced by retailers due to rising commodity and energy prices and a tight labour market.
"While some supply chain costs are beginning to fall, this is more than offset by the cost of energy, meaning a difficult time ahead for retailers and households alike."
Mike Watkins, head of retailer and business insight at NielsenIQ, said: "External factors are keeping shop price inflation at record highs and the challenging economic conditions are significantly impacting consumer confidence and retail spend.
"With pressure growing on discretionary spend across both non-food and food retail, delivering good value is the table stake in the battle for shopper loyalty over the next eight weeks."
Which? head of food policy Sue Davies said: "Soaring food prices are a real concern, and our research shows millions of consumers are already skipping meals or struggling to put healthy meals on the table due to the cost-of-living crisis. It is vital that households get the support they need from the government and businesses.
" Supermarkets have a crucial role to play in helping their customers navigate the tough months ahead. Budget lines for healthy and affordable essential items need to be widely available across their stores and they should ensure shoppers can easily compare the price of products to get the best value. Promotions should be targeted at supporting those most in need."
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