Over the past decade, world prices of key resources have risen sharply, meaning prices paid by UK households for food and energy have gone up much more quickly than other prices. We analysed the impact of this on the UK economy and living standards.
Our work demonstrated that, if resource prices had just kept pace with other consumer prices, the average household could have saved over £1,000 on its food and household energy bills in 2012. And the poorest would be the hardest hit. We showed that if this trend were to continue household food and energy bills could have risen by another £1,675 over and above general inflation by 2020.
We argued that the only reliable way to protect the UK economy against these resource price shocks in future would be to improve radically the efficiency of our resource use and reuse, reducing dependency on foreign imports
See our 2014 infographic, policy insight and the presentation on YouTube.