Food inflation in the UK rose for the fourth month in a row in May 2025, driven by fresh foods, latest data from the British Retail Consortium (BRC) – NielsenIQ shop price index has shown.
The report for May 2025 shows that food inflation climbed to 2.8% on an annual basis, exceeding April’s 2.6% and the three-month average inflation rate of 2.6%.
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The surge in prices was particularly noticeable in the fresh food sector, which saw inflation reach 2.4% year-on-year (YoY) in May, up from April’s 1.8% and above the three-month average of 1.8%.
Ambient food inflation, however, experienced a slight decline to 3.3% YoY during the month, falling from 3.7% the month before.
Prices outside the food segment continued to experience deflation during May; however, this trend showed signs of slowing down within specific categories such as fashion and furniture.
Non-food deflation recorded a decrease to 1.5% YoY for the month, compared to a 1.4% decline in April. This is marginally higher than the three-month average deflation rate of -1.6%.
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By GlobalDataOverall shop price deflation in the UK remained steady at 0.1% YoY in May, maintaining the same rate as in April and exceeding the three-month average deflation rate of -0.2%.
BRC chief executive Helen Dickinson stated: “With retailers now absorbing the additional £5bn in costs from April’s increased employer National Insurance contributions and National Living Wage, it is no surprise that inflation is rearing its head once again.
“Later this year, retailers face another £2bn in costs from the new packaging tax, and there are further employment costs on the horizon from the implementation of the Employment Rights Bill. Government must ensure the Employment Rights Bill is fit for purpose, supporting workers’ rights while protecting jobs and investment for growth. If statutory costs continue to rise for retailers, households will have to brace themselves for more difficult times ahead as prices rise faster.”
Recent data from Office for National Statistics revealed that UK inflation rose to 3.5% in April 2025, up from 2.6% in March – the highest rate since January 2024.
