Tue, 29 Jul 2025

Tue, 29 Jul 2025 High meat and tea costs drive up food prices

Food prices rose by 4% in the year to July, according to the British Retail Consortium.
Food prices have increased by 4% over the past year, according to a survey from the British Retail Consortium (BRC). This marks the sixth consecutive month of rising food price inflation. The main contributors to this increase were higher prices for meat and tea due to tighter global supplies. As a result, households can expect to pay an extra £275 on their grocery bills this year. Inflation rates for fresh food, including fruit and vegetables, remained at 3.2%, while cupboard goods experienced a higher rate of inflation at 5.1%. Experts point to factors such as avian flu and lower stock intensity in the poultry industry as contributing to the sharp increase in chicken prices from £2.85 per kilo to £5.50. Retailers are struggling to absorb these costs, but some companies are trying not to pass them on to consumers. The rising food prices have also added to the overall inflation rate in the UK, which has been higher than expected at 3.6% in June. The increasing cost of living is putting pressure on household budgets, and experts warn that this could negatively impact retailers' sales over the summer holiday season. However, some areas such as fashion and furniture are seeing discounts, offering consumers a chance to refresh their wardrobe and homes.
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