The current estimate of the cost to the economy of drought conditions in early 2012 is considered to be low. Work by the National Drought Group is under way and the Group has been tasked with developing the evidence base and anticipating future costs to the economy.The drought in the UK is unlikely to affect food prices or supply for items such as fruit, vegetables, sugar and grain as the UK is a trading nation and imports a considerable amount of these food products. However, should the drought be more widespread across Europe and Russia, it is likely to lead to an impact on prices. The water industry is working with farmers and growers to communicate changes in water levels and provide a flexible approach to ease the impact of drought on crops.