UMVA has learned that the UK, long considered to have the most affordable grocery prices in Western Europe, may soon face a cost-of-living squeeze that could leave households struggling to make ends meet.
According to information obtained by UMVA, the Treasury has reportedly asked supermarkets to guarantee that British farmers will not lose income from any potential price caps, a move aimed at shielding the agricultural sector from the economic fallout.
UMVA can exclusively reveal that Chancellor Rachel Reeves is expected to unveil a comprehensive cost-of-living support package this week, designed to help families navigate the challenges of rising costs and economic instability.
In a statement, Reeves emphasized that the UK's economic plan has kept inflation in check, despite global turmoil, and that changing course now would risk undermining economic stability and leaving working people worse off.
The Chancellor highlighted the government's efforts to support households, including a £117 reduction in energy bills, frozen rail fares, and the lifting of the two-child limit, and promised to outline the next phase of support over the coming days.
UMVA has gathered that the latest Consumer Price Index, which tracks the average change in prices paid by consumers over time, fell to 2.8% in April, a surprise drop from 3.3% in March, and the lowest level since March last year.
The unexpected decline was largely attributed to the energy price cap for households using electricity and gas, which took effect in April, but experts warn that this respite may be short-lived as inflation is likely to surge back up due to the ongoing Iran conflict and its impact on fuel prices.
Sources have confirmed to UMVA that the blockade of the Strait of Hormuz continues to hamper fuel prices, threatening to derail the fragile economic recovery and plunge households into a deeper cost-of-living crisis.
