// M&S chairman Archie Norman warns food prices could rise by another 10%
// Norman has chaired M&S since 2017 and was previously the boss of Asda
Marks & Spencer chairman Archie Norman has warned that food prices could rise by as much as 10% this year.
The call comes after Governor of the Bank of England Andrew Bailey warned that households could witness an “apocalyptic” shock from the food inflation.
Norman has chaired M&S since 2017 and was previously the boss of Asda.
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“It’s very negative for consumer discretionary income but it’s perhaps not apocalyptic,” he told BBC Radio 4’s Today programme.
“It wouldn’t be surprising to see food price inflation over the course of the year running towards eight per cent to 10%.
“But we don’t know that yet because it runs through the year – some has run through now but there is quite a lot still to come.”
Norman said grocers have had to pass some cost inflation onto customers but said spending has been bolstered by customers’ savings built up during the pandemic.
“What’s happening is global prices are rising, it’s not to do with UK food so much as the effect of freight costs, wheat prices, oil and energy prices knocking onto almost everything,” he said.
“As a consequence, all food retailers in the UK are – because we operate on very thin margins – going to have to reluctantly allow some food price inflation to run through the system.
“At the moment, UK spending is pretty good because customers still have quite a lot of stored-up savings.
“The crunch is not going to be now, it is going to be in the autumn after people have come back from their holidays, spent their money and there is nothing left in the kitty.”
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