This article is by John Stapleton – an entrepreneur and investor
The Autumn Statement is being billed as Austerity Mark II – which it sort of is – but not for a while yet. Jeremy Hunt hopes his plan will stabilise the economy and above all, will be an effective weapon to curb inflation. He’s right to prioritise this ambition – the trouble is, at what cost?
Inflation is not just the scourge of Britain. Food inflation is a particularly good barometer as it is mercilessly transparent and immediate. Margins in the food industry are already quite slim and the supply base has little room to manoeuvre, resulting in prices being passed on more readily and rapidly (to retailers and to consumers) than in many other sectors.
Hardly a week goes by without staggering inflation figures emerging across a range of countries. In Germany, inflation has reached its highest level in thirty years. Food prices have risen 18.7% year on year. The US saw its consumer price index for food jump 11.2% in September, compared to a year ago. In Ireland, inflation rates hit record highs – up 12.4% with many staples increasing by 28%, year on year. This is eye-watering stuff.