Food inflation in the UK reached a new peak in April, hitting its highest level since May 2024 — 2.6% year-on-year. According to the Financial Times, citing a report by the British Retail Consortium (BRC), the rise was driven by higher prices for staple goods, including bread, meat, and fish.
This increase outpaced March’s rate of 2.4% and comes amid growing pressure on retailers, who are grappling with rising operational costs due to increases in the national minimum wage and employer insurance contributions.
Overall retail prices in April saw a modest decline of just 0.1% compared to the same period last year — the smallest drop since the summer of 2024. Meanwhile, deflation in non-food goods also slowed, falling to 1.4% from 1.9% in March. Within this context, shelf-stable goods stood out with a 3.7% increase in prices, while fresh produce rose by 1.8%.
Experts note that domestic cost pressures — particularly labour expenses — have become the primary drivers of inflation, replacing the external shocks that previously dominated. These internal dynamics, coupled with ongoing global disruptions, are creating a dual impact on food pricing.
The Bank of England has already warned that food prices are rising faster than anticipated. And although the current inflation rate remains far below the highs of 2023, the price surge in April could significantly affect vulnerable households, especially those where food comprises a large portion of the family budget.
Historical Trends
Food inflation in the UK has remained a pressing socio-economic issue for several years. The most dramatic surges occurred in 2022 and 2023, as the country emerged from the pandemic and grappled with the economic fallout of the war in Ukraine. During that period, food price inflation reached record levels — exceeding 15% year-on-year by spring 2023. Virtually every product category was affected, from dairy and vegetables to staple grains.
Since then, the pace of inflation has slowed. By late 2023, the Bank of England was reporting signs of gradual stabilization. However, the April uptick signals a structural shift in inflation drivers: while global factors such as logistics, raw materials, and energy previously led the charge, domestic costs — including wages and taxes — are now playing an increasingly important role.
A Growing Challenge for Retailers and Producers: Margin Pressure and Market Competition
The rise in food prices is already taking a toll on businesses. Retailers — particularly those operating in the low-price segment — find themselves squeezed between escalating costs and customers’ reluctance to pay more. To maintain customer loyalty, many supermarkets are reducing profit margins or pushing private-label products, both of which erode overall profitability.
Producers, especially small and medium-sized enterprises, face a “double blow”: the rising costs of ingredients and packaging are compounded by increased wage obligations and employer contributions. In the long run, this dynamic could lead to further market consolidation, as smaller players are edged out by larger firms with stronger financial reserves and greater adaptability.
In addition, supply chain risks are intensifying. Suppliers who fail to adjust to the new economic conditions may exit the market or shrink their product offerings — a development likely to affect store inventories and consumer choice once again.