As reported by the Office for National Statistics (ONS), key staples such as dairy products, eggs, and vegetables have contributed to a decrease in food inflation rates.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) saw an increase of 4.1% over the 12 months leading to April 2025. This marks a rise from 3.4% reported in the previous month, March. Additionally, when assessed on a monthly basis, CPIH experienced a significant rise of 1.2% in April 2025, compared to a modest increase of 0.5% during the same time in April 2024.
Similarly, the Consumer Prices Index (CPI) rose by 3.5% within the same 12-month period, up from 2.6% reported for March. On a monthly scale, the CPI also rose by 1.2% in April 2025, juxtaposed against a minimal increase of 0.3% in April 2024.
Food and non-alcoholic beverage prices exhibited a modest rise of 3.4% in the year leading to April 2025, compared to a 3% increase noted in March. The upward pressure on prices primarily stemmed from increases in the costs of meat, bread, cereals, sugar, and jam. Conversely, the prices of vegetables, milk, cheese, and eggs contributed to a downward impact on overall inflation rates.
On a month-to-month basis, food and non-alcoholic beverage prices rose by 0.7% in April 2025, reflecting an increase from the 0.3% increase recorded a year prior.
Kris Hamer, the director of insight at the British Retail Consortium, stated, “Headline inflation accelerated in April as additional costs from rising National Living Wage and Employers’ NI costs filtered through to prices faced by consumers, as well as rising costs of utilities (energy, water, and broadband). The jump in labour costs pushed up food inflation, which climbed above 3%.
Moreover, “Even with food prices rising overall, there were still deals to be had, with prices of dairy products such as milk, cheese, and eggs falling on the month. Rising inflation was inevitable following the wave of additional costs hitting employers, and particularly retailers who employ over three million people across the country. For months, retailers have been warning that rising costs would lead to higher prices. To mitigate this, the Government must now find ways to help reduce business costs and regulatory burden. It is imperative that its Employment Rights Bill targets unscrupulous employers and avoids burdening responsible businesses with additional costs which could put retail job numbers into reverse.”
Balwinder Dhoot, the director of industry growth and sustainability at the Food and Drink Federation (FDF), expressed concerns regarding the rise of food and non-alcoholic drink inflation, which climbed to 3.4% in April 2025. He noted that “Food and drink manufacturers said they expect production costs to rise an average of 4.8% over the next 12 months as a result of rising energy and commodity prices alongside regulatory costs such as increases to National Insurance Contributions and a new £1.4 billion packaging tax. We therefore forecast food and non-alcoholic drink inflation will average 4.3% over 2025.
Moreover, he emphasized, “Businesses continue to work hard to protect shoppers from rising prices and safeguard the UK’s food security. It’s imperative that the Government acknowledges the importance of our sector to the UK economy and the nation’s food supply by making growth a top priority in its upcoming Food and Industrial strategies.”
Furthermore, “An enhanced trading arrangement with the EU marks a positive step towards driving growth for UK businesses, and government should engage with industry to ensure this agreement reflects their interests, as well as continuing to cut red tape to enable food manufacturers to invest in productivity.”
