Meat and poultry prices fell during June as lower beef prices helped pull category inflation down, according to the latest AIMS inflation report.

Average prices across the red meat and poultry sectors dropped 0.41 per cent over the month, with beef prices falling 2.26 per cent.

AIMS head of communications Tony Goodger said it was “way too early to suggest that meat and poultry inflation is behind us”, but said the June data showed a notable easing across the category.

Chicken inflation was flat over the month, while lamb and pork prices rose slightly, up 0.97 per cent and 0.85 per cent respectively.

Goodger said the drop in beef had been driven by falling prices across all three surveyed steak cuts, suggesting shoppers may be moving away from higher price-per-kg products.

“All three of the surveyed beef steak cuts dropped in price suggesting that consumers have switched away from the high price per kg leading to falling demand,” he said.

Across the lamb fixture, prices were either slightly lower or unchanged, with the exception of lamb shanks, which jumped 10.93 per cent and pushed the average price rise to just under one per cent.

Goodger said there had been “considerable talk” of consumers switching away from beef and lamb towards pork and poultry. However, despite boneless pork legs rising 5.9 per cent and pork mince increasing 2.76 per cent, he said the pork fixture remained largely unchanged.

Chicken prices were more mixed, with whole birds up 2.72 per cent and drumsticks, wings and legs all recording increases of under 0.5 per cent. Breast portions and thighs both saw marginal falls.

Year-on-year inflation across meat and poultry is now 0.64 per cent, driven entirely by a 5.16 per cent rise in lamb cuts. Bone-in shoulder saw one of the steepest annual increases, up 14.09 per cent.

Goodger said last year’s record beef prices had now eased, although roasting joints remain 12.73 per cent more expensive year on year. However, falling steak prices pushed overall beef inflation into negative territory, down 0.97 per cent annually.

The biggest annual falls came in pork, down 3.28 per cent, and chicken, down 3.09 per cent. Chops and loin steaks, breast portions and thighs all fell by around 10 per cent over the year.

Chicken wings were the main exception, rising 9.95 per cent year on year, which Goodger said was likely being driven by fast-growing demand from the out-of-home QSR fried chicken sector.

Goodger said the next two months would provide a clearer indication of whether meat and poultry price inflation is easing more sustainably.

He added that, heading into autumn, supermarkets are likely to come under pressure to keep prices competitive ahead of the Christmas trading period.

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