Steak to become a luxury item as food prices tipped to soar by as much as 6% in 2014

Food prices will rise faster than inflation next year and for the rest of the decade, forcing restaurant chains and caterers to cut back on serving "luxuries" such as fillet steak and prawns, it was claimed last night.

Some big name chains are already switching to cheaper cuts of meat - such as pork shoulder - and serving up smaller portions of salmon to keep a lid on cost, according to a report by consultants Prestige Purchasing.

David Read, Prestige chief executive, told the Daily Telegraph that food prices could rise by as much as 6 per cent next year, but at the very least were likely to jump by another 3.8 per cent.

He said Britain was in a new era where food prices would continue to soar because of growing global demand and the effects of climate change on harvest and higher commodity costs.

He said: "Last year we predicted 4.4 per cent for 2013 and we have seen food prices go up by around 4.2 per cent. Next year we think it will be around 3.8 per cent and that food prices will be above inflation for the foreseeable future.

"Restaurants and caterers are going to be innovative with food and ingredients and the way they deliver value on a plate in ways they have never been before.

"There are going to be a lot more composite dishes, with say a smaller serving of salmon with salad and pulses.

"There will be more pork, more lamb instead of beef, more clams and mussels instead of prawns." He added: "Prime cuts, fillet steak, sirloin steak, are going to be much more of a luxury item in the coming years."

High food inflation has contributed to the unprecedented squeeze on Britons'incomes. Fruit and vegetables soared in price by as much as 12 per cent earlier this year because of unprecedented fluctuations in the weather.

Prestige said it feared the price of wheat, grain and cereals could leap by 15 per cent next year, with rise expected to jump by 6 per cent because of smaller crop yields in Brazil and China.

Cheese is expected to rise by as much as 5 per cent and beef by between 4 to 6 per cent following a 17 per cent rise this year.


Read more: http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/10504187/Steak-to-become-a-luxury-item-as-food-prices-tipped-to-soar-by-as-much-as-6-in-2014.html