As milk prices soar, flat whites could soon drop by £4 or more, reaching all-time highs and forcing companies to raise prices.
Robi Lumby, a coffee roaster and co-founder of the capital’s Cairngorm Coffee, said he was “extremely concerned” about the impact of inflation on his business.
“One of our concerns is that rising costs will lead customers to decide that the price of coffee is more of a luxury lifestyle decision than an everyday morning staple. ,” he said.
“All things considered, we expect flat white coffee prices to be at least £4 by the end of the year.
“It may sound silly, but that’s the position we’re likely to find ourselves in.”
The warning was issued on Wednesday when the Office for National Statistics (ONS) said consumer price index inflation reached 10.1% in September compared to 9.9% in August.
This exceeded economists’ expectations of a slightly lower figure of 10%.
Darren Morgan, director of economic statistics for the ONS, said the rise was due in part to further increases in food overall, marking the biggest annual rise in more than 40 years.
According to data modeling, these increased by 14.5% compared to the same month last year, representing the largest annual increase since 1980.
As the price of food goes up, so does the price of milk. The ONS said the average price for a pint of milk in August was 62p, the highest since records began in 1971.
Lambie said milk had been “massively undervalued” for some time, making prices “more realistic”.
However, he warns: