Restaurant prices set to rise due to bad weather
Consumers will be confronted with rising restaurant prices and a leap in the cost of veggie burgers after extreme weather ravaged crops across Europe.
Alan Clarke, head of European Fixed Income Strategy at Scotiabank, said the drought and freak snow storms that hammered the Mediterranean vegetable harvest could bump up processed food prices, including veggie burgers.
He said the cost of eating out is also likely to rise, as restaurants grapple with a sharp rise in vegetable costs and a jump in import prices caused by the Brexit-hit pound.
"Extreme weather has devastated vegetable crops in Spain, leading to shortages of a number of vegetables in the UK," he explained, with supermarkets rationing the number of lettuces each customer can purchase.
It comes as consumers face a squeeze at supermarket checkouts from rising inflation, which climbed to a two-and-a-half year high in December at 1.6%. Overall food prices rose by 0.8% between November and December.