Food inflation falls to lowest level since March 2025

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Food-To-GoGeneral RetailNews

UK food price inflation has fallen to its lowest level in more than a year, helped by bumper strawberry crops and summer promotions on ice cream.

Food inflation slowed to 2.4 per cent in June, down from 2.7 per cent in May, according to the latest British Retail Consortium and NielsenIQ Shop Price Monitor.

It marks the lowest level of food inflation since March 2025, offering some relief to shoppers after a prolonged period of pressure on household grocery bills.

Fresh food inflation dropped more sharply, falling to 2.8 per cent year on year in June from 3.4 per cent the previous month.

The BRC said strong strawberry harvests and promotions on ice cream helped bring prices down as much of the UK experienced unusually hot weather.

Overall shop price inflation remained unchanged at 1.2 per cent year on year in June, the same rate as May.

However, non-food inflation edged up to 0.6 per cent, from 0.5 per cent a month earlier, despite retailers running summer promotions on categories such as clothing and footwear.

BRC chief executive Helen Dickinson said the competitive retail market was helping to keep inflation in check, but warned that retailers were still facing rising costs from higher National Insurance, packaging taxes, extreme weather and geopolitical tensions.

The data was collected between 1 and 7 June and covers a narrower basket of goods than the official consumer price inflation measure.

The figures suggest food price pressures are easing in some areas, although retailers remain under pressure from higher employment costs, supply chain volatility and input price increases.

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Food inflation falls to lowest level since March 2025

Strawberry

UK food price inflation has fallen to its lowest level in more than a year, helped by bumper strawberry crops and summer promotions on ice cream.

Food inflation slowed to 2.4 per cent in June, down from 2.7 per cent in May, according to the latest British Retail Consortium and NielsenIQ Shop Price Monitor.

It marks the lowest level of food inflation since March 2025, offering some relief to shoppers after a prolonged period of pressure on household grocery bills.

Fresh food inflation dropped more sharply, falling to 2.8 per cent year on year in June from 3.4 per cent the previous month.

The BRC said strong strawberry harvests and promotions on ice cream helped bring prices down as much of the UK experienced unusually hot weather.

Overall shop price inflation remained unchanged at 1.2 per cent year on year in June, the same rate as May.

However, non-food inflation edged up to 0.6 per cent, from 0.5 per cent a month earlier, despite retailers running summer promotions on categories such as clothing and footwear.

BRC chief executive Helen Dickinson said the competitive retail market was helping to keep inflation in check, but warned that retailers were still facing rising costs from higher National Insurance, packaging taxes, extreme weather and geopolitical tensions.

The data was collected between 1 and 7 June and covers a narrower basket of goods than the official consumer price inflation measure.

The figures suggest food price pressures are easing in some areas, although retailers remain under pressure from higher employment costs, supply chain volatility and input price increases.

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

Food-To-GoGeneral RetailNews

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