COUNCIL officers may have to fork out almost an extra £500,000 for food in Argyll and Bute in the event of a cost increase, a report has said.
A report is set to go before councillors highlighting potential financial impacts of the conflict in Iran, including on the price of food.
An increase to the cost is expected “in the next few months” due to the production and supply of fertiliser being affected.
Food prices increased by 20 per cent a few years ago, with a similar rise this time around expected to cost the council around £470,000.
The details feature in a report which will go before the council’s policy and resources committee at its meeting on Thursday, May 21.
Executive director Kirsty Flanagan said: “Data from the Office for National Statistics indicate that food price inflation often lags behind energy shocks due to delayed adjustments in the supply chain.
“The Competition and Markets Authority has determined that energy, fuel, fertiliser, and feed costs are key factors in food prices.
“Based on news reporting from the Gulf, in addition to increasing the price of oil, the production and supply of fertiliser is also being significantly affected and it is therefore expected that increases in food costs will manifest in the next few months with the increase in food costs expected to be more persistent in the medium term than increases in fuel costs.
“In 2022, the invasion of Ukraine by Russia led to a food price increase of approximately 20 per cent, with prices remaining elevated for an extended period. A similar rise would result in an additional annual cost pressure of £470,000.”
