UK grocery retailers and food businesses are showing greater restraint on price increases, as new ONS data suggests some inflationary pressure is beginning to ease.

The latest Office for National Statistics Business Insights and Conditions Survey found that 20 per cent of UK trading businesses expect to raise prices in June, down from 28 per cent in May.

However, the figure remains above levels recorded in June 2025 and June 2024, showing that cost pressures are still weighing on businesses despite the month-on-month fall.

The wholesale and retail trade sector remains one of the most likely to lift prices, with 30 per cent of businesses expecting to increase prices in June. Only manufacturing was higher, at 32 per cent.

The findings suggest grocery retailers and food suppliers are taking a more cautious approach to pricing, as shoppers remain under pressure and supermarkets face continued scrutiny over food inflation.

The ONS said 41 per cent of trading businesses were not considering any price rises in June, up from 36 per cent in the previous survey period.

It also noted that businesses have consistently overestimated future price rises since April 2022, with the proportion expecting to increase prices remaining higher than the number that later reported doing so.

While fewer businesses are planning hikes, costs remain a challenge for the grocery sector.

Energy prices were the most commonly cited reason for considering higher prices, mentioned by 28 per cent of businesses. This was down from 34 per cent in May, but remains one of the highest readings since mid-2023.

Labour costs were cited by 24 per cent of businesses, while raw materials and transport costs were each mentioned by 21 per cent.

Among larger businesses with 10 or more employees, labour costs were the leading factor behind potential price rises, cited by 43 per cent of respondents. Energy prices followed at 36 per cent.

The survey also found that 60 per cent of businesses remained concerned about energy prices, underlining the continued impact of utility costs on retailers, suppliers and hospitality operators.

The data comes as grocers continue to balance rising operating costs with fragile household spending.

The ONS said 27 per cent of trading businesses reported lower turnover in April compared with the previous month, while economic uncertainty remained the most common challenge affecting performance.

Supply chain disruption also remains a concern. Seven per cent of businesses reported global supply chain disruption in April, with almost half of those affected citing conflict in the Middle East as a contributing factor.

The latest figures suggest inflationary pressure has not disappeared from the grocery market, but businesses are becoming more reluctant to pass further costs directly on to shoppers.

For supermarkets, convenience operators and food suppliers, the challenge remains finding ways to protect margins while keeping prices competitive for households still watching every pound.

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