Scots hammered on food costs as sugar and beef prices rise twice as fast as wages

EXCLUSIVE: Some everyday food items have risen in price nearly four times as fast as wages since the last Holyrood election in 2021.

Scots have been hammered by soaring food prices over the last five years as sluggish wage growth has been outstripped by the rising costs of everyday items like sugar, beef and eggs.

Research published by the independent think-tank Future Economy Scotland found that median earnings in Scotland have increased by 31 per cent since voters went to polls at the last Holyrood election in May 2021.

But the price of goods including sugar and beef has risen more than twice as fast as wages in that time, with consumers seeing price rises of over 65 per cent. The price of olive oil, which topped the list, has risen nearly four times as fast as wages, with prices up a staggering 119 per cent since May 2021.

The price of eggs and chocolate has also far outstripped wage growth, rising by 61 per cent and 54 per cent respectively.

While the price of many household essentials has soared, other goods – notably consumer electronics – have become cheaper. Since 2021, personal computers and mobile phones have fallen in price by around 25 per cent and 10 per cent respectively.

Laurie Macfarlane, Future Economy Scotland co-director, said: “Polling shows the cost of living is a top concern among voters this election, and it’s obvious why.

“For the past five years, Scots have been squeezed by a pincer movement of weak wage growth on the one hand, and rising prices on the other.

“Our analysis shows that the price of essentials like beef and sugar have risen more than twice as fast as wages, while olive oil has risen nearly four times as fast. It’s little wonder voters are feeling the pinch.

“That computers and phones have become cheaper will be little consolation to those struggling to feed their kids and heat their homes.”

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Macfarlane added: “While global factors have contributed to price rises, the Scottish Government is not powerless to act. After nearly two decades of flatlining living standards, more of the same simply won’t cut it.

“Political parties must move beyond empty rhetoric and put forward credible plans to raise wages and improve affordability. Scotland simply cannot afford another five years of stagnation.”

It comes as John Swinney last week pledged to use the Scottish Government’s powers to intervene on public health matters to impose price caps on basic items such as bread and milk.

But the promise was met with with a backlash from retailers and warnings from economists that such a huge intervention by the state in the grocery market could lead to shortages of certain items in shops.

It is also far from clear if the Scottish Government has the legal ability to dictate prices in shops, given it is bound by the UK Internal Market.

Speaking today, the First Minister admitted the scheme could only be introduced in the immediate term – and avoid lengthy legal challenges in the courts – if retailers agreed to sign-up on a voluntary basis.

The SNP has pointed to the introduction of minimum unit pricing (MUP) on alcohol as an example of the Government using public health powers to intervene in domestic markets.

But that policy was held up for years after it was repeatedly challenged by distillers.

Asked if his price cap vow could realistically be introduced by next year, Swinney said: “The steps on food prices could, if we got voluntary agreement on that.

“I’ve got public health powers I can use, but there’s a lot of ways we can make progress by agreement. And I think it’s in everyone’s interests to do that.”