Labour and material shortages driving up
Wednesday, October 20, 2021
The report highlights the negative effects of an acute shortage of staff, especially for lorry drivers, pickers, and production and production personnel.
Scarcity of packaging and crop problems in some parts of the world have contributed to supply chain problems throughout the food sector.
The number of job vacancies in the UK hit a record high in the third quarter of 2021, with the food sector currently having the biggest impact, with close to six empty jobs per 100 people.
August also marked the first full month of UK hospitality retail trade since March 2020.
As personnel, logistics and import costs all keep increasing, the index predicts lasting inflation throughout the rest of 2021, far into 2022 although the rate of increase is expected to rise sharply in the short run.
Shaun Allen, CEO of Prestige Purchasing, says: "With Christmas approaching fast it is essential that operators are well in control of their supply chains in advance of what will be a bumpy period for both cost and availability of product. Good planning and communication will be critical to maintaining supply and profitability in this, the most critical trading period of the year."
The continued return of customers in restaurants, pubs, bars and other pubs has also created higher demand for many food and beverages, raising the cost of inflation further.