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UK food inflation highest in a year

ended 27. May 2025

UK food inflation rose to a one-year high of 2.8% in May, driven mainly by fresh food costs like beef. Retailers are facing higher expenses from wage and tax hikes, while global food prices are also climbing.

What does this mean for consumers struggling with persistently high costs of living? What about retailers? 

3 responses from the Newspage community

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Harry MillsVerified
Director at Oku Markets
It’s bad news for meat eaters as rising beef prices pushed UK food inflation to a one-year high, climbing to 2.8% in May from 2.6% in April. British retailers are struggling to absorb an estimated £5 billion in annual costs following April’s increases to the minimum wage and employer national insurance contributions. Meanwhile, broader UK inflation saw an unexpected jump to a more-than-one-year high in April, driven by rising housing, energy, and transport costs. Brits continue to face prolonged cost-of-living pressures amid anaemic economic growth and a bleak outlook. The pain may not end soon, as market expectations for interest rate cuts have faded, meaning homeowners are likely to face higher borrowing costs for longer as the Bank of England holds rates steady to combat inflation.
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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
Rising production costs inevitably feed through to consumers and with food, it’s those on lower incomes who feel it most. Many will turn to cheaper, processed options just as we’re being urged to eat healthier. For some children, school meals are their only source of fresh food. Once again, it’s the vulnerable who are hit hardest.
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Debbie PorterVerified
Managing Director at Destination Digital Marketing
In the headlines is news that comes as a surprise to nobody. The increases in National Insurance contributions in April have created a huge hole that needs to be plugged by SMEs, as have the increases to the National Living Wage for those aged 21 of 6.7%, for 18-20 year a rise of 16.3% and for 16-17 year olds and apprentices, a rise of 18.0%. We are in the dictionary definition of a wage spiral where an increase in wages leads to increased production costs, which in turn cause businesses to raise prices. The next logical step from here is that employees will go on to demand even higher wages to keep up with the new higher prices. There is no magic money tree, and all that extra cash has to come from somewhere.