Meat and tea prices fuel sixth straight month of rising food inflation

Yahoo

29-07-2025

UK families are paying more every time they go grocery shopping, as food price inflation surged for the sixth consecutive month in July, driven by a rise in the costs of meat and tea, according to the British Retail Consortium (BRC).
The figures show that food prices are now 4% higher than a year ago, up from 3.7% in June and surpassing the three-month average of 3.5%. Fresh food inflation remained steady at 3.2%, while ambient food prices saw a more significant jump, climbing to 5.1% compared to last June, up from 4.3% the previous month.
Overall, shop price inflation also increased, rising to 0.7% in July, up from 0.4% in June, and above the three-month average of 0.3%.
Helen Dickinson, chief executive of the BRC, warned that the increase in food price inflation will be felt by households across the country.
Read more: UK inflation unexpectedly rises in June on higher fuel prices
'Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month," she said. "Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices."
Despite the rise in food costs, Dickinson pointed to a few positive trends. 'There were a few bright spots, with discounts in fashion and furniture offering consumers a chance to refresh their wardrobe and homes.'
The annual inflation rate in the UK unexpectedly rose to 3.6% in June from 3.4% in May on food costs and higher transport prices.
Bread, cereals, and cake, along with meat, and milk, cheese and eggs (mainly cheddar cheese) went up in price. These were partially offset by small downward effects from chocolate products, as well as fruit juice.
Mike Watkins, head of Retailer and Business Insight at NIQ, highlighted the growing strain on household finances. 'Consumers' household budgets are coming under pressure with food retailers now seeing price increases above the Consumer Price Index (CPI).'
'However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around,' he added.
With summer sales in full swing, Watkins also pointed out that high street retailers are facing challenges. 'With inflation on the up, high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum.'
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Dickinson urged chancellor Rachel Reeves to think about consumers in the next autumn budget. She said: 'If the government wants to support struggling families, it must think carefully about the next Budget. Retailers are doing everything possible to protect their customers from the worst of the inflationary pressures, but the £7bn cost to retail of last year's budget forced most retailers to raise prices.
"Further tax rises will ultimately hurt households, locking in inflation and forcing people to pay higher prices to put food on the table.'