Food inflation remained unchanged in February, despite continued cost pressures on the sector, according to new data.

According to the latest figures from the Office for National Statistics (ONS), food inflation remained at 3.3% last month and some dairy products such as milk, cheese and eggs saw month-on-month price drops.

However, alcohol and tobacco prices rose by 5.7% in the 12 months to February 2025, up from 4.9% previously.

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British Retail Consortium director of insight Kris Hamer warned that it would be “impossible to absorb all £5bn of new costs which hit the industry in April” as a result of tax changes set out in the Autumn Budget. 

He said that as a result of these costs, “food inflation has jumped significantly in recent months and is forecast to hit 5% by the end of 2025”.

Hamer added: “On top of this, retailers are still burdened by an outdated business rates system. It is vital that the government’s reform of business rates doesn’t impose additional costs onto retailers. Reform must leave no shop paying more.”

Chancellor Rachel Reeves is set to unveil additional changes in her Spring Statement today, including further cuts to welfare benefits and government departments. However, she has ruled out further tax rises.