Food prices increase for fourth month in a row as customers warned of ‘more difficult times ahead’

27 May 2025, 06:45

Food inflation rose for the fourth consecutive month in May, with wholesale meat prices increasing the cost of steak on supermarket shelves, latest figures show.

It comes after UK inflation surged to its highest level for more than a year at 3.5% last month after households were hit by a raft of “awful April” bill increases.

Shop prices overall remained in deflation, at 0.1% cheaper than a year ago and unchanged from April, according to the British Retail Consortium (BRC)-NIQ Shop Price Index.

However food prices are now 2.8% higher than a year ago, up from April's 2.6%.

Fresh food prices are rising particularly quickly, up to 2.4% higher than last May from April's 1.8%.

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Meanwhile, ambient food inflation fell to 3.3% from April's 3.6%.

BRC chief executive Helen Dickinson said: "While overall shop prices remain unchanged in May, food inflation rose for the fourth consecutive month.

"Fresh foods were the main driver, and red meat eaters may have noticed their steak got a little more expensive as wholesale beef prices increased.

"With retailers now absorbing the additional £5 billion in costs from April's increased employer national insurance contributions and national living wage, it is no surprise that inflation is rearing its head once again.

"Later this year, retailers face another £2 billion in costs from the new packaging tax, and there are further employment costs on the horizon from the implementation of the Employment Rights Bill.

“Government must ensure the Employment Rights Bill is fit for purpose, supporting workers' rights while protecting jobs and investment for growth.

"If statutory costs continue to rise for retailers, households will have to brace themselves for more difficult times ahead as prices rise faster."

Non-food deflation dropped further to 1.5% against April's 1.4%.

However this slowed in categories such as fashion and furniture as retailers began to unwind heavy promotional activity.

Meanwhile, prices fell faster for electricals as retailers tried to encourage spending before any potential knock-on impact from US tariffs, the BRC said.

Mike Watkins, head of retailer and business insight at NielsenIQ, said: "Whilst shoppers are seeing savings at the checkout as retailers increase promotional activity, increasing prices is still an extra challenge to consumer spending alongside rising household bills.

"If consumer confidence remain weak as looks likely, then retailers may have to work harder to encourage shoppers to spend over the summer."