If a takeaway coffee is the new barometer of rising living costs in the UK, the situation could be even worse for caffeine addicts than the picture painted by the chancellor this week as a high street latte now costs well over £3, according to new figures.
The price of takeaway coffee has been thrown into the spotlight after Jeremy Hunt released a video that used paper cups as a prop to explain the December inflation rate of 10.5% to the public. “I’m afraid coffee is getting more expensive,” he said, adding it was “nearly £3 a cup”.
Why is inflation high and how are we going to halve it?
— HM Treasury (@hmtreasury) January 18, 2023
Grab a coffee and let Chancellor @Jeremy_Hunt explain. pic.twitter.com/8mpf4xfxCO
But the Project Café 2023 report suggests the £3 barrier is already history, with higher ingredient and energy costs – as well as labour shortages – adding 33p or 11.3% to the price of a medium (12oz) latte over the last 12 months. The hot milk brew is the UK’s most popular coffee variant, and a serving now costs £3.25, it says.
Even a small (8oz) latte costs more than £3 these days, with its price up 24p at £3.03. At the start of his video, Hunt orders a flat white, but this coffee also costs more than £3. A standard size is £3.14, up 30p, according to the report, which analysed the sales of branded coffee chains such as Costa, Starbucks and Pret a Manger but does not include independents.
The chancellor, who was likened to Mr Bean for his awkward performance in the video, used a series of cups emblazoned with the words “Covid”, “Ukraine” and “energy” to explain why prices were marching higher. A cup of coffee cost £2.56 a year ago but £2.86 today, he explained, based on Office for National Statistics price data for a takeaway latte.
The report suggests Britons still consider coffee an “affordable luxury” despite the cost of living crisis. Sales at UK coffee chains increased 11.9% to £4.9bn last year, according to the report. However, total sales are still below pre-pandemic levels amid belt-tightening and the trend of fewer visits to high streets and shopping centres.
