London Daily

Focus on the big picture.
Friday, Aug 28, 2026

Asda chairman Stuart Rose: Food prices will keep rising

Asda chairman Stuart Rose: Food prices will keep rising

Food prices will keep rising, and stay higher "for quite some time" due to the high cost of raw materials, Asda chairman Lord Rose has said.

Many families struggling with the cost of living crisis are "going to suffer", the Conservative peer warned - although retailers will try to keep costs down.

The Bank of England expects price inflation to hit 8% this spring.

But Business Secretary Kwasi Kwarteng said inflation would not necessarily be long term.

Families in the UK have been struggling as energy, fuel and food costs rise rapidly.

Speaking to the BBC Sunday Morning programme, the Asda chairman said he feared that food prices "are going to go higher, and they are going to stay high for quite some time".

Pressures on prices include the war in Ukraine and a resurgence of Covid in China, said Lord Rose.

Oil and gas prices were already rising rapidly before Russia's invasion of Ukraine, but the war has pushed prices up further.

In turn, this is ramping up raw materials costs for manufacturers and retailers - including for meats like chicken and staples such as pasta - with the price hikes being passed on to consumers.

"Chicken feed is going up, and all the other associated costs are going up," he said. "I see no quick solution to this.

"Pasta is made from durum wheat, and durum wheat has gone up in price, so that's an inevitable cost increase."

Co-op chief executive Steve Murrells told the Sunday Times that chicken could become as expensive as beef due to the war in Ukraine.

Fast food chain Nando's, which specialises in chicken, said that some of its prices had gone up in April.

Asda chairman Stuart Rose said consumers will suffer from fresh price rises


Lord Rose said retailers "will do what we can" to shield customers from raw materials cost increases, but added they were "not immune from cost increases ourselves" and would pass them on.

He said supermarkets have staff, electricity, fuel, insurance and transport costs, alongside raw materials costs.

"If you're baking biscuits or baking cakes, [energy] goes into the cost of the raw material that you have to pass on [to consumers]," he said. "What we have to try and do is mitigate that."

There is a danger of long-term effects on the economy from high inflation including "a wage spiral" and "stagflation" - where prices and wages go up, but the economy doesn't grow.

"They are both evil, and the government has got a very difficult and tricky road to navigate," Lord Rose said.

He added that 90% of Asda customers were "very worried about the cost of living, and how they are going to make ends meet".

Kwasi Kwarteng said it was not possible to predict how long inflation would remain high


Business Secretary Mr Kwarteng said there was "obviously an issue with cost of living increases", but "we don't know how long that will last".

"Who can say how long any inflation will last?" he said. "It's a global issue, there's no doubt that every economy in the world is looking at the high prices and greater inflation."

He the government was "dealing with it by creating jobs."

High inflation will not necessarily go on for years, Mr Kwarteng added, due to the government's "energy security strategy", which includes new nuclear and offshore wind power generation.

Labour has repeated calls for a windfall tax on oil and gas companies to subsidise energy bills.

Mr Kwarteng said he was against a windfall tax because it would discourage investment, but he said Chancellor Rishi Sunak had not ruled it out.

Mr Sunak is "going to look at all options", Mr Kwarteng added.

Talking about Labour's windfall tax proposals, its leader Sir Keir Starmer told Sky News: "We are not talking about taxing the profits they expected to make. This is the profits they didn't expect to make.

"We would then use that to reduce energy bills by up to £600."

Labour's shadow foreign secretary David Lammy told the BBC that families dealing with cost of living pressures should not have to face a rise in National Insurance. The government has said this rise will help the NHS recover from Covid and fund social care in England.

"It's absolutely the wrong time for people to face a National Insurance rise," he said. "Let's be clear, we've had 15 tax rises over the last decade from this Conservative government, at a time when four in 10 people are buying less groceries."

Liberal Democrat leader Sir Ed Davey said inflation would be high for "at least a year or two".

"Millions of pensioners and families are really worried about the cost of living," he said. "They're pretty annoyed that the Conservative government seem to be making it worse with tax rises."

Scotland's First Minister Nicola Sturgeon said: "This week, as most people received their pay packet, they finally see the reality of the Tory-made cost of living crisis - a hike in National Insurance, soaring bills and no support from Westminster."

Newsletter

Related Articles

0:00
0:00
Close
Nearly 23,000 UK Households Expected to Move Home on Busiest Day of 2026
UK Benefit Payments to Arrive Early Ahead of August Bank Holiday
Reform UK Pledges to Replace GDPR and Cut Tax Administration Red Tape
Andy Burnham Launches Work Experience Plan for One Million Young People Outside Education or Work
Andy Burnham Faces Labour Backlash After Dropping Support for Political Donations Cap
Andy Burnham Announces UK-Wide Summit With Leaders of Scotland, Wales and Northern Ireland
Met Office Warns of Heavy Rain and Flood Risk Across England and Wales After Summer Heat
Bank of England Warns AI Adoption Could Reduce Demand for Automatable Jobs
UK Confirms National Salmonella Outbreak With More Than 200 Cases
UK Airports Handle Record 81 Million Passengers Despite Middle East Disruption
Ofgem Raises UK Energy Price Cap by Four Percent to £1,723
Cyber Attack Hits Customer Data Systems at Manchester, Stansted and East Midlands Airports
TSA Unveils Major Airport-Security Overhaul as It Drops Gold+ Privatization Plan
CIA Chief Warned Russia Against Attacking NATO in Secret Moscow Mission
Raheem Sterling Charged With Dangerous Driving After Lamborghini Crash
The Secret Dolly Parton Kept Until Her Death: "She Was Much Sicker Than She Let On"
Middlesbrough House Fire Kills Woman and Seven-Year-Old Girl
Prince Harry and Meghan Markle Return to UK Amid Renewed Media Attention
Raheem Sterling Charged With Dangerous Driving After London Collision
Greenpeace Threatens Legal Action Over Crown Estate Offshore Wind Leasing
Nvidia Revenue Surges to Ninety-Six Point Two Billion Dollars on Artificial Intelligence Demand
Meta Agrees to Global Youth Safety Changes Following Multi-State Legal Settlement
UK Government Plans Autumn Summit With Scottish, Welsh and Northern Irish Leaders
CMA Caps Veterinary Prescription Fees at Twenty-One Pounds
Thames Water Pilot Records Forever Chemicals at Thirteen Times the Legal Limit
Kent Meningitis Outbreak Reaches Thirty-Four Confirmed Cases
Forty Children Missing From UK Asylum Accommodation Remain Unaccounted For
UK Court Upholds VAT on Private School Fees
US Designates Palestine Action as Foreign Terrorist Organization
UK Approves Massive New Chinese Embassy Complex in London Amid Security Concerns
Prime Minister Andy Burnham Visits Kyiv and Offers Cruise Missile Designs to Ukraine
Glacier Collapse, Not Earthquake, Triggered Deadly Nepal-Tibet Flood
Andy Burnham Drops Plan to Cap Political Donations
Conservative Leadership Contest Intensifies as Robert Jenrick Attacks Kemi Badenoch
French-Born Defence Secretary Wes Streeting Condemns Homophobic Abuse Since Taking Office
UK Government Delays Commercial Robotaxi Rollout in London Over Regulatory Gaps
NHS Complaints About Autism and ADHD Care Waiting Times Triple Over Five Years
UK Government Launches 10,000 Work Placements for Young People With Sainsbury's
NHS England to Offer Free At-Home Cervical Cancer Screening Kits
EU Biometric Border Checks Cause Delays of Up to Five Hours for British Travellers
US Imposes Economic Sanctions on UK-Based Protest Group Palestine Action
Two Planned UK Datacentres Could Produce More Annual Carbon Emissions Than ExxonMobil's Entire UK Operation
London Surgeons Complete First Artificial Intelligence-Assisted Brain Tumour Removal
UK Services Growth Rebounds as Consumer Confidence Reaches Two-Year High
Ofgem Confirms Four Percent October Energy Price Cap Increase for UK Households
Government Considers Insolvency Law Changes to Bring Thames Water Into Public Ownership
Andy Burnham Signs Artificial Intelligence Defence Pact During Visit to Kyiv
Church of England Faces Renewed Scrutiny Over Historical Safeguarding Failures
Reform UK Proposes £30 Tax Credit for Long HMRC Telephone Queues
Greater Manchester Secures More Than £100 Million to Upgrade Victorian Railway Stations
×