The trade association has called for action as the latest overall inflation rates dipped slightly to 3.8%, a figure that was lower than anticipated.
In September 2025, food and non-alcoholic drink prices experienced a 0.2% decrease on a monthly basis.
Year-on-year, inflation for food and non-alcoholic drinks slowed to 4.5%, down from 5.1% in August. This marks the first decline in the annual rate since March 2025.
According to ONS statistics, among 49 main food and non-alcoholic drink product categories, five exhibited double-digit inflation: beef and veal at 26.9%, chocolate at 18.1%, butter at 17.5%, coffee at 13.4%, and whole milk at 12.0%.
These findings align with research from the Energy and Climate Intelligence Unit, which identified that foods like beef, butter, chocolate, coffee, and milk are key contributors to inflation.
In contrast, the ONS reported the steepest price declines for olive oil (-15.4%), flours (-6.2%), sugar (-3.9%), frozen seafood (-3.2%), and pasta (-2.6%).
Despite the decline, the FDF expressed concern about rising prices, which continue to adversely affect manufacturing productivity.
Balwinder Dhoot, Director of Growth and Sustainability at the FDF, stated: “While food and drink inflation fell in September, food and drink prices are rising at a rate which is still significantly above average.”
Dhoot emphasized that while the FDF welcomed the Chancellor’s recent announcement to reduce regulatory burdens on businesses, quick implementation is vital to support hard-pressed shoppers.
“We also need a long-term plan to turbocharge productivity and build resilience in the food sector, rather than short-term fixes. Government can do this by supporting the transition to higher-skilled jobs, promoting British food brands abroad, and creating a regulatory environment that gives manufacturers the confidence to invest in the UK and benefit shoppers.”
Additionally, the FDF welcomed the government’s plans to streamline and enhance technical and training routes. Recently, it was announced that post-16 education will undergo transformation starting in 2027.
New V levels will replace many existing qualifications, focusing on students’ interests and strengths—whether academic, technical, or vocational.
Caroline Keohane, Head of Industry Growth at the FDF, remarked: “Food and drink manufacturers have been impacted by technical skills and labour shortages in the UK for several years, and as a result our vacancy rates run at more than double than the wider manufacturing sector. This continues to hold back productivity growth.”
“We welcome the government’s intention to improve technical and vocational training routes. However, it’s vital that these reforms create clear pathways that make it easier for employers to navigate and for young people to understand the many apprenticeship and career options available to them.”
