Shopper are being told to expect to see their weekly food shop prices rise in the lead up to Christmas amid a lack of truck drivers in the UK and labour shortages.
An increase in logistics costs in the US will aso affect supermarket prices in the UK as Kraft Heinz chief Miguel Patricio warned “raising prices, where necessary, around the world”.
Mr Patricio told the BBC onsumers will need to get used to paying more for food due to the world’s rising population and a lack of land to grow produce.
But he also said firms would have to take on the cost rises, adding: “I think it’s up to us and to the industry and to the other companies to try to minimise these price increases.”
This is why your supermarket food shop could cost more ahead of Chrismtas
Speaking about the reason behind the increases, Mr Patricio said: “Specifically in the UK, with the lack of truck drivers.
“In (the) US, logistic costs also increased substantially, and there’s a shortage of labour in certain areas of the economy.”
It is also because inflation was “across the board” unlike in previous years, he said.
It comes amid fears over supply chain issues ahead of Christmas.
Business advisory firm BDO LLP said its research suggested that economic growth had slowed for five months in a row due to disruption.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here