Four in five Britons worried Iran war will make food more expensive, poll finds

Four in five people are worried that the Iran war will make food more expensive, according to a new poll, as businesses warned the “window is closing” for ministers to cut energy costs for UK retailers.

Research by Opinium found that 80% of people are worried about the rising price of groceries, which would come from retailers passing on cost increases to consumers, while 73% expect the conflict to push up prices of other products.

The blockade of the strait of Hormuz has already sent oil and gas prices soaring, caused a crisis in the global fertiliser industry, and has made shipping and distribution more expensive.

The effects have so far been felt most acutely in sectors such as manufacturing and chemicals, which use high amounts of gas. The UK chancellor, Rachel Reeves, announced more support on bills for the most energy-intensive businesses in April, but now faces fresh calls to cut costs for the food sector.

Helen Dickinson, the chief executive of the British Retail Consortium (BRC), said the war is “driving up costs across the supply chain and families are right to be concerned”.

Opinium found that 80% of people are worried about the rising price of groceries. Photograph: Maja Smiejkowska/Reuters

She said ministers should remove non-commodity energy costs for retailers, which are the charges and fees that make up a large portion of electricity bills for companies.

“Other governments are already acting,” she added. “Germany has reduced electricity costs for businesses by moving levies off bills and EU leaders are actively discussing similar responses to this crisis. The UK should be moving in the same direction, not treating global instability as cover for inaction on costs of its own making.”

The Opinium survey suggested that the cost of living crisis would remain an important political issue beyond tomorrow’s local elections, and found that, of the 2,000 people polled, 81% were worried about rising energy bills, 76% about petrol and diesel and 68% about tax increases.

All of those factors could contribute to rising grocery prices, with the Bank of England forecasting food inflation to rise to 7% by the end of the year because of higher fertiliser, energy and transport costs.