Food price inflation has hit nearly 10 percent, according to the latest ONS figures, with the cost of ingredients and energy still rising.
The rate of UK inflation surged to a new 40-year high of 9.4 percent in June, while food price inflation hit 9.8 percent, the ONS figures show.
Chief executive of the Food and Drink Federation (FDF), Karen Betts said the situation was 'very concerning'.
Food and drink companies were doing everything they could to contain inflation and to limit price rises for hard-pressed households, she said.
But the situation was 'undoubtedly very challenging', with the prices of ingredients and energy still surging, while labour shortages were biting.
“There are things our government can do to help ease the cost of living crisis for households and to help food and drink businesses thrive through a difficult period.," Ms Betts said.
"Our industry wants to see bold new policies from a new prime minister that create the conditions for investment to boost productivity and competitiveness.
"These include incentivising business investment through rapid reforms to capital allowances, incentivising skills training, reforming burdensome regulation and red tape, and promoting growth in new markets through exports.”
