Business

Unprecedented inflation grips UK households in 2023

Published

2 years ago

January 2, 2024

CONSUMERS grappled with the most severe inflationary pressures in a generation throughout 2023, significantly impacting household budgets and causing widespread distress.

In March, food inflation surged to a staggering 19.6%, marking a more than 45-year high. While the pace of price increases has moderated, prices still persist at 9% above the previous year’s levels.

Sue Davies, Head of Food Policy at Which?, remarked, “The year 2023 witnessed the worst inflation in a generation. Despite a slowdown in the rate of price escalation, many find food prices still prohibitively high. Essential items may never revert to pre-cost-of-living crisis prices.”

Although some relief is noted in the reduced cost of butters and spreads compared to the previous year, everyday essentials may not witness a return to their pre-crisis affordability. Davies urged supermarkets to support struggling consumers by ensuring affordable food remains accessible in smaller branches.

Likewise, households endured another year of energy bill challenges as the pandemic’s lingering effects and Russia’s invasion of Ukraine exposed the UK’s vulnerability to the volatile wholesale market.

The year began with Ofgem’s energy price cap soaring to over £4,000 annually for the average household. However, the government’s energy price guarantee capped bills at an average of £2,500, supplemented by a £400 relief. While bills have since decreased, the price cap will rise to just over £1,900 from January 1, still notably higher than pre-crisis levels.

Headline inflation has receded sharply, hitting its lowest level in over two years last month, reinforcing predictions for the Bank of England to initiate interest rate cuts in early 2024. Official figures revealed falling fuel prices and reduced food inflation contributed to the Consumer Prices Index (CPI) dropping to 3.9% in November from 4.6% in October.

Despite the decline, the Bank cautions against premature celebrations, emphasizing the ongoing challenge of bringing inflation back to its 2% target. The situation remains fluid, with the potential for rapid changes based on fuel price spikes or significant wage growth.

There’s a suggestion that headline inflation might increase early in the new year as the CPI basket is re-weighted and the household energy price cap increases by 5% from January 1.

Balwinder Dhoot, Director of Sustainability and Growth at the Food and Drink Federation, highlighted that while agricultural commodity prices are generally falling, they remain 21% higher than pre-pandemic levels. Factors like the recent navigation turmoil in the Red Sea are expected to add to inflationary pressures on the sector.

Andrew Goodacre, Chief Executive of the British Independent Retailers Association (Bira), anticipates 2024 to be another challenging period amid prevailing economic pessimism. Stability is crucial for economic recovery, with consumer confidence playing a pivotal role. Goodacre emphasized the potential for instability in the event of a general election.

Looking ahead, Jack Meaning, Chief UK Economist at Barclays, expects 2024 to be a challenging transition year. He anticipates the Bank of England easing interest rates from mid-year, providing some relief to those affected by the cost-of-living crisis. Meaning concluded, “2024 will be a year of transition, from headwinds to tailwinds, but come next December we should be able to toast the new year with more festive spirit.”

Business

Holiday lets allowed to stay at Narberth dairy farm

Published

3 hours ago

December 5, 2025

Bruce Sinclair - Local Democracy Reporter

A CALL for a Pembrokeshire dairy farm to keep two “alternative” holiday pods sited without permission as a way of diversifying in an uncertain industry has been given the go-ahead.

In an application recommended for approval at the December meeting of Pembrokeshire County Council’s planning committee, Vaynor Farm Ltd sought retrospective permission for the siting of two self-catering holiday accommodation pods at The Cart House, Vaynor Farm, Bethesda, near Narberth as part of a farm diversification enterprise.

It was before committee members as it was recommended for delegated conditional approval by senior officers despite being against the development plan.

Previous retrospective schemes, for two self-catering pods along with an application to retain a shepherd hut accommodation pod at another farm, a part of the Vaynor Farm farm enterprise, were refused in 2023 and 2025, the latter due to “an unjustified and harmful impact on the character and appearance of the open countryside”.

Detailing the current application, an officer report for members said the pods: Vaynor Farm Pod within the garden of The Cart House, and The Paddock Pod, on the edge of a small paddock, were constructed off-site and have been transported to their current locations, with external decking, hot tubs, a barbecue area and car parking provided for each pod.

It added: “A business plan has been submitted with the application, which explains that due to uncertainties associated with dairy farming, the applicant has sought to diversify the farm enterprise to incorporate tourism accommodation.

“The application makes the case that the proposed development represents farm diversification. It is acknowledged that the development has resulted in the provision of an alternative type of holiday accommodation for which it has been demonstrated there is a demand, contributing to the diversity and quality of accommodation available within the county and supporting an existing farm business, with consequent economic and social benefits.

“Evidence has been provided that demonstrates the extent to which the pods have provided income which has been used to support the farm business.

“However, officers consider that should planning permission be granted, a [planning obligation] will be necessary to ensure that the accommodation pods continue to support the farm business and are not separated from it at some future point in time.”

Delegated conditional approval limiting the use and occupation of the self-catering accommodation pods to short term holiday use only was moved by Cllr Brian Hall and unanimously backed by committee members.

Business

First wind turbine components arrive as LNG project moves ahead

Published

14 hours ago

December 4, 2025

Tom Sinclair

THE FIRST ship carrying major components for Dragon LNG’s new onshore wind turbines docked at Pembroke Port last week, marking the start of physical deliveries for the multi-million-pound renewable energy project.

The Maltese-registered general cargo vessel Peak Bergen berthed at Pembroke Dock on Wednesday 26^th November, bringing tower sections and other heavy components for the three Enercon turbines that will eventually stand on land adjacent to the existing gas terminal at Waterston.

A second vessel, the Irish-flagged Wilson Flex IV, has arrived in Pembroke Port today (Thursday) carrying the giant rotor blades.

The deliveries follow a successful trial convoy on 25 November, when police-escorted low-loader trailers carried dummy loads along the planned route from the port through Pembroke, past Waterloo roundabout and up the A477 to the Dragon LNG site.

Dragon LNG’s Community and Social Performance Officer, Lynette Round, confirmed the latest movements in emails to the Herald.

“The Peak Bergen arrived last week with the first components,” she said. “We are expecting another delivery tomorrow (Thursday) onboard the Wilson Flex IV. This will be blades and is currently showing an ETA of approximately 03:30.”

The £14.3 million project, approved by Welsh Ministers last year, will see three turbines with a combined capacity of up to 13.5 MW erected on company-owned land next to the LNG terminal. Once operational – expected in late 2026 – they will generate enough electricity to power the entire site, significantly reducing its carbon footprint.

The Weather conditions were favourable for the arrival of the Wilson Flex IV, which was tracking south of the Smalls at midnight.

The abnormal-load convoys carrying the components from the port to Waterston are expected to begin early next year, subject to final police and highway approvals.

A community benefit fund linked to the project will provide for residents in nearby Waterston, Llanstadwell and Neyland.

Further updates will be issued by Dragon LNG as the Port of Milford Haven as the delivery programme continues.

Photo: Martin Cavaney

Business

Cardiff Airport announces special Air France flights for Six Nations

Published

18 hours ago

December 4, 2025

Tom Sinclair

Direct services to Paris-Charles de Gaulle launched to cater for Welsh supporters, French fans and couples planning a Valentine’s getaway

CARDIFF AIRPORT and Air France have unveiled a series of special direct flights between Cardiff (CWL) and Paris-Charles de Gaulle (CDG) scheduled for February 2026.

Timed to coincide with two major dates — the Wales v France Six Nations clash on Saturday 15 February and Valentine’s weekend — the flights are designed to offer supporters and holidaymakers an easy link between the two capitals.

For travelling French rugby fans, the services provide a straightforward route into Wales ahead of match day at the Principality Stadium, when Cardiff will once again be transformed by the colour, noise and passion that accompanies one of the tournament’s most eagerly awaited fixtures.

For Welsh passengers, the additional flights offer a seamless escape to Paris for Valentine’s Day, as well as opportunities for short breaks and onward travel via Air France’s wider global network.

Cardiff Airport CEO Jon Bridge said: “We’re thrilled to offer direct flights to such a vibrant and exciting city for Valentine’s weekend. Cardiff Airport is expanding its reach and giving customers fantastic travel options. We’ve listened to passenger demand and are delighted to make this opportunity possible. There is more to come from Cardiff.”

Tickets are already on sale via the Air France website and through travel agents.

Special flight schedule

Paris (CDG) → Cardiff (CWL):