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Minimum wage rise will drive up food prices, Healey warned
The Telegraph • • world
Key Points:
- The Chancellor is expected to announce a 3.9% rise in the National Living Wage, increasing it from £12.71 to about £13.20 per hour from April next year.
- Food and Drink Federation warns that higher labour costs due to the wage increase, combined with rising ingredient prices and fuel costs, will likely force food manufacturers to raise prices.
- Food inflation stood at 1.3% in the 12 months to September but is forecasted to peak at 6.4% by July 2027 due to increased production costs.
- Industry experts and hospitality leaders express concern that the wage rise will exacerbate inflation and place significant financial strain on labour-intensive sectors.
- The Treasury declined to comment on the wage increase ahead of the Budget announcement.
