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UK food inflation rose for the fourth straight month into a year in May, according to industry data suggesting continuous strain on household finances.
The UK retail consortium said on Tuesday that food prices were 2.8% per year this month, up 2.6% in April, up from its fastest pace since May last year.
“Fresh food is the main driver, and red meat eaters may have noticed that steaks are a bit more expensive as wholesale beef prices rise,” said Helen Dickinson, CEO of BRC.
Dickinson said retailers are currently absorbing an additional £5 billion in costs, up to employers’ national insurance contributions and minimum wage.
According to the UN Food and Agriculture Organization index, global food prices rose at a rate of 7.6% per year in April, with vegetable oils and dairy products rising more than 20% year-on-year.
However, the BRC said non-grocery prices remained at minus 1.5% deflation and in May would keep overall grocery price inflation at minus 0.1%.
BRC data also showed a divergence between increasing annual inflation for fresh food and mitigation trends in surrounding foods such as canned items.
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Trade group figures ahead of official inflation data on May 18th. Previous BRC and inflation data have picked up food price growth compared to most of 2024, reflecting rising wholesale food prices and increased corporate costs.
In April, ONS reported that monthly prices for meat, oil and confectionery rose sharply as overall inflation rose to 3.5%.
Inflation is expected to continue to rise for most of the year driven by energy and food, but overall wage growth continues to outweigh price increases.
“We recognize that it is extremely painful for people, especially when it comes to energy, food,” said Claire Lombardelli, Lieutenant Governor of the Bank of England, who said earlier this month the central bank cut it to 4.25% to 4.25%.
Mike Watkins, head of retailer and business insights at Nielseniq, said he has put together the data at the BRC, saying that rising food prices is a “special challenge to consumer spending along with rising household bills.”
“If consumer trust is weak, and if they look, retailers may have to work hard to encourage shoppers to spend the summer,” he added.
