UK food inflation rises for fourth consecutive month

According to a report⁣ by webangah News Agency, The Guardian stated that rising prices of⁤ fresh produce, notably steak, have been the primary driver behind‍ this upward‌ trend.

The latest ⁢report from the British Retail Consortium (BRC), ‌compiled in⁤ collaboration with research firm Nielsen IQ, shows annual food inflation reached 2.8% in may—up from 2.6% in⁣ April. Despite this increase,​ overall goods prices ​remain ⁤0.1% cheaper ⁢then last‍ year, unchanged from the ⁤previous month.

This broader⁢ decline ‍stems largely from falling non-food ‍prices, especially electronics, as retailers cut costs to attract customers and mitigate potential impacts of Donald Trump’s tariffs.

the BRC ⁣emphasized⁤ that fresh food accounted for⁤ most of the inflationary pressure.⁤ Helen Dickinson, CEO of the​ BRC, noted: “Fresh produce had the biggest impact. Red meat consumers likely noticed steak prices creeping up due to higher wholesale beef costs.”

In contrast, non-food goods saw a 1.5% year-on-year⁣ price drop in May.‍ Though, ​the BRC warned that discounting has​ slowed in sectors ⁣like clothing and furniture⁤ as retailers phase out heavy‍ promotions.

The‌ consortium also ‍cautioned that deflationary pressures ⁣are now under strain due ⁣to ‍£5 billion in new costs ⁤for retailers—including ‌higher employer National Insurance⁣ contributions‌ and last month’s minimum wage ⁢hike—with an additional £2 billion packaging ⁣tax looming later this year.

These‌ financial burdens may ⁣force​ retailers to pass⁢ some⁣ costs onto consumers through price hikes, signaling tougher ⁤economic conditions ahead​ for ⁣households.

The data follows rising inflation across other sectors: last week’s Office for National ⁢Statistics report showed annual inflation unexpectedly⁢ jumping to 3.5% in April—the highest rate in⁢ over a year—driven by surging water bills, energy costs, and local council​ taxes.