As US trade tariffs, retaliatory measures, geopolitical tension, and climate change enhance global inflation risks, a new report by the Institute of Grocery Distribution (IGD) forecasts that food prices will rise 3.4% in UK retail and 5.2% in the Away From Home (AFH) sector this year. This spike will be a culmination of increasing labor costs, driven by the government’s autumn budget measures. AFH is defined as food and drink sales in full-service and quick-service restaurants, traditional pubs and bars, accommodation, leisure, workplace catering, healthcare, education, and services.
