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Inflation: NI businesses raise prices as 9.4% inflation hits

BBC PotatoesBBC
Wilson's Country processes 800 tonnes of potatoes every week

Record levels of inflation mean the price of food and fuel is continuing to rise and put further pressure on the cost of living.

Official figures from the Office of National Statistics (ONS) show inflation hit 9.4% last month.

That means the figures are at their highest level since 1982.

Huge increases in the cost of energy is putting businesses under pressure and forcing them to increase their own prices.

Wilson's Country in Portadown has seen its energy costs rising.

It processes 800 tonnes of potatoes from across the island of Ireland every week.

Managing director, Lewis Cunningham, said: "The biggest challenge at this stage is energy.

"That relates to fuel of lorries and distribution costs and electricity costs to run the business from when you come in every morning and turn on the machinery.

"Especially now in this warm weather in the fresh food business we have chills running and that's an extra huge draw on electricity."

All of the processes in the factory are automated which means the company's electricity bill has doubled.

Lewis Cunningham
Lewis Cunningham says higher energy costs means he has to increase prices

"To give you an example, our electricity now compared to 2021 has doubled, and at one stage in the Ukraine war in February and March it tripled," Mr Cunningham said.

"It's a very difficult cost to reduce as we need to have the machines on, we need to wash potatoes, pack potatoes and chill potatoes - and even more concerning is what the autumn might bring.

He added: "It's high now but certainly a lot of commentary would suggest it's going to get higher again."

Higher prices

Mr Cunningham said the increases they have seen in energy costs and also in things like packaging mean they have to pass on an increase to their customers in the form of higher prices.

He said: "Unfortunately the costs have been elevated now at such a high level with no outlook on the horizon of any costs reducing that we are having to pass these costs on.

"Every element of the supply chain is in the same predicament - our farmers costs are up, our processing costs are up, our customers costs are up and unfortunately the price of a grocery basket has been increasing and I think will continue to increase."