Food inflation rises again in May

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UK food inflation rose by 2.8% in May, compared with the same time last year, according to figures from the British Retail Consortium (BRC)-Nielsen IQ (NIQ) Shop Price Index. Fresh food saw inflation of 2.4%.

The BRC says that costs imposed by the government are behind the increase. These include increased employer national insurance contributions and higher wage costs.

The figures show higher growth than in April, when food inflation rose by 2.6% year-on-year.

However, non-food prices saw deflation of 1.5% year-on-year, compared to a decline of 1.4% in April. Overall, shop price deflation was unchanged at 0.1% year-on-year.


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“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 bit more expensive as wholesale beef prices increased,” said BRC chief executive Helen Dickinson.

“Non-food prices remained in deflation, but this slowed in categories such as fashion and furniture as retailers began to unwind heavy promotional activity. Prices were falling faster for electricals as retailers tried to encourage spending before any potential knock-on impact from US tariffs.”

According to Mark Watkins, head of retailer and business insight at NIQ, prices are still going up despite increased promotional activity, making life tough for consumers.

“If consumer confidence remains weak as looks likely, then retailers may have to work harder to encourage shoppers to spend over the summer,” he said.

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Food inflation rises again in May

food inflation | grocery store

UK food inflation rose by 2.8% in May, compared with the same time last year, according to figures from the British Retail Consortium (BRC)-Nielsen IQ (NIQ) Shop Price Index. Fresh food saw inflation of 2.4%.

The BRC says that costs imposed by the government are behind the increase. These include increased employer national insurance contributions and higher wage costs.

The figures show higher growth than in April, when food inflation rose by 2.6% year-on-year.

However, non-food prices saw deflation of 1.5% year-on-year, compared to a decline of 1.4% in April. Overall, shop price deflation was unchanged at 0.1% year-on-year.


Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning


“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 bit more expensive as wholesale beef prices increased,” said BRC chief executive Helen Dickinson.

“Non-food prices remained in deflation, but this slowed in categories such as fashion and furniture as retailers began to unwind heavy promotional activity. Prices were falling faster for electricals as retailers tried to encourage spending before any potential knock-on impact from US tariffs.”

According to Mark Watkins, head of retailer and business insight at NIQ, prices are still going up despite increased promotional activity, making life tough for consumers.

“If consumer confidence remains weak as looks likely, then retailers may have to work harder to encourage shoppers to spend over the summer,” he said.

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