The article reports that UK food inflation has reached an 11-month high due to rising costs of staples like bread, meat, and fish, as noted by industry data released on Tuesday. According to the British Retail Consortium (BRC), food prices increased annually by 2.6 percent in April, up from 2.4 percent in March, marking the fastest growth since May of the previous year.
These figures precede the official inflation data for April, which is expected on May 21. Both data sets have indicated an increase in food price growth at the start of the year compared to most of 2024, influenced by higher wholesale food prices and stronger domestic price pressures.
BRC’s Chief Executive, Helen Dickinson, highlighted that the prices of essentials rose between March and April during a time when retailers faced increased employment costs, such as higher employer national insurance contributions and minimum wages. She noted that the period of shop price deflation seems to be ending as food inflation rises to its highest in 11 months, with non-food deflation easing significantly.
Overall, shop prices fell by 0.1 percent in April compared to the same month last year, marking the smallest contraction since summer 2024, according to the BRC. This change occurred after Chancellor Rachel Reeves outlined higher taxes on employers in the autumn Budget, which took effect recently. Various business surveys have shown that companies plan to reduce headcount and raise prices as compensatory measures.
The Bank of England stated last month that food inflation had exceeded expectations at the year’s start. In addition to external influences, domestic factors, such as labor costs, may have contributed to this rise.
Although food inflation is below the double-digit rate of 2023, influenced by the events in Ukraine, the April increase will significantly impact lower-income households, who spend more on essentials. Non-food products experienced a price drop of 1.4 percent, a milder contraction than the previous month and the smallest decline in nine months.
Fresh food inflation increased to 1.8 percent in April compared to the previous year, surpassing the growth in March and the three-month average. Prices of ambient food rose by 3.7 percent annually, consistent with the previous month and above the three-month average, as reported by the BRC.
Mike Watkins, head of retailer and business insight at NielsenIQ, which collaborates with the BRC, stated that shoppers benefited from lower shop price inflation a year ago, but prices are gradually increasing across supply chains. Retailers are exploring ways to mitigate these rising costs.
