Global cost of living crisis: UK bill surge

What happened: UK food prices are set to surge by 50% since the start of the cost of living crisis, driven by climate and energy shocks, with 3 million households resorting to skipping meals. The Chancellor is meeting supermarket bosses to discuss potential price rises and shortages, while low-income households in Wales will receive £200 to help with surging fuel prices. UK voters are calling for lower taxes and energy bills as economic concerns grow.

Market impact: The cost of living crisis is significantly impacting UK consumers, with food and energy prices surging. This is affecting low-income households disproportionately, leading to increased demand for government support. Retailers and food producers are likely to face increased pressure on margins, while energy companies may see increased demand for support schemes.

What to watch next: The Bank of England's Inflation Report on May 5th will provide further insight into the expected trajectory of food inflation. The UK government's Spring Statement on March 23rd may offer additional support measures for households struggling with rising costs. The next set of earnings reports from major UK supermarkets, starting with Tesco on April 13th, will provide a clearer picture of the impact on their businesses.