'Six eggs used to be £1' - why everyday essentials cost so much more now

The cost of everyday staples like eggs, milk, and bread has risen sharply since 2022, with a box of six free-range eggs increasing from £1 to £1.80 and four pints of milk rising from £1.29 to £1.65 [1]. A loaf of basic white bread now costs 74p, up from 65p two years ago [1]. The price hikes stem from a confluence of global events and supply chain pressures. The UK's worst avian flu outbreak led to millions of hens being culled, causing egg shortages [1]. Simultaneously, Russia's invasion of Ukraine in 2022 sent grain and energy costs soaring, impacting both animal feed and dairy production [1]. While wheat prices have since stabilized, new conflicts in the Middle East have sparked fresh global supply fears [1]. Producer costs have risen sharply, with prices for materials and goods increasing by 7.7% in the year to April, while the amount producers charge retailers rose by only 4% [1]. Danni Hewson of AJ Bell notes that fixed contracts between farmers and supermarkets can leave producers absorbing sudden cost spikes [1]. The UK grocery market is dominated by major retailers like Tesco, which holds a market share of around 28.4% [3]. This environment is "massively competitive," according to Hewson, with supermarkets often selling staples at a loss to attract customers [1]. Andrew Opie of the British Retail Consortium states that as inflation rose, supermarkets focused on value, "in some cases selling products below cost and absorbing the impact through their own margins" [1]. A July 2024 investigation by the Competition and Markets Authority found no evidence that supermarkets were artificially inflating prices during the crisis [1]. Despite sales rising from about £130bn to £160bn between 2020 and 2024, profit margins for the main retailers have not increased over the past two decades [1].