Asda boss warns food and oil prices could continue to increase in ‘knock-on effect’ of inflation

Asda chairman Lord Rose has warned food prices will increase following the ‘knock-on effect’ of the cost of raw materials, inflation and the war in Ukraine.

Sunflower oil, wheat and oil have all been affected by the Ukraine war, with oil costs continuing to rise. Earlier this week, supermarkets across Greater Manchester were seen with empty aisles of cooking oil following panic buying from shoppers and shortfalls in supply.

Appearing on the BBC Sunday Morning show, Lord Rose said: “We don’t know what will happen to gas prices and whatever else and clearly that will be dictated by however long this war goes on for, but I am afraid there is knock-on effect for all raw materials.

READ MORE: We attempt to to feed two for a week for less than £15 at Aldi - and there is even money leftover after

“There is going to be a new level of costs for these raw materials and they won’t go down. It is a new high and that is something that people are going to have to accommodate. What we are now going to have to think about is, is that going to have a long-term effect on inflation because then will we have a wage spiral, or won’t we?”

The Asda chairman said there will also be the need for people and businesses to change their behaviours as they adapt to the pressures. He added: “What we all now have to do is maybe change our behaviours. I will personally look at my own behaviour – what things I need and what things I don’t need.

"The Government can’t sort out all the problems but the Government can do a few things. It could talk to industry. It could talk to the food retailers to make sure that we are cutting out every extra cost.”

He called for “continuity across the four countries in the UK”, adding: “At the moment there are not