Sky-high food prices continue unabated, with industry experts predicting further hikes ahead
Food inflation hits a 1-year high and ain't showing signs of slowing down, warns industry body
Got some bad news for your wallet! Food inflation has surged to its highest level in nearly a year and it ain't about to take a chill pill anytime soon, according to the British Retail Consortium (BRC).
That's right, mate. During April, food costs jumped up by 2.6% on an annual basis - the highest since May last year and a rise from the 2.4% increase in March.
The BRC ain't holding back either. They're warning that the cost of grub is only gonna go up due to rising expenses, with the retail sector facing a whopping £7 billion in tax increases this year following the budget last October.
"Brace yourself, folks," said the BRC, "Shoppers are looking at forking over more dough for their meals. But worry not, fellow industry figures suggest the pain won't be immediate, thanks to the ongoing supermarket price war."
Kantar Worldpanel, which tracks trends and prices, revealed that the pricing war's still going strong. They reported that spending on promos reached its highest level this year, accounting for almost 30% of total sales over the four weeks to 20 April.
Price cuts, mainly via loyalty cards, helped consumers make the most of Easter with almost 20% of items sold at Tesco and Sainsbury's on a price match.
However, the BRC's measure of wider grocery inflation during the same period shot up to 3.8%. And overall shop price inflation at -0.1% over the 12 months to April shows that discounting is largely responsible for weaker non-food goods.
"The party's over for retailers," said BRC chief exec, Helen Dickinson. "Food inflation's reached its highest in 11 months, and non-food deflation's eased significantly. It's clear that retailers can't soak up the surge in costs they're facing anymore."
Retail sales growth has been proving somewhat resilient this year, but rising household bills in April - along with Donald Trump's trade war - ain't gonna help matters. Bills like inflation-busting water, energy, and council tax bills are expected to take a bite out of major purchases.
Also, a further BRC survey, published on Tuesday, showed more than half of HR directors expect to reduce hiring due to the government's planned Employment Rights Bill. This proposed legislation, currently being debated in parliament, would protect millions of workers with guaranteed minimum hours, greater hurdles for firing new staff, and increased sick pay. The BRC's worried that the minimum hours rule could negatively impact part-time work.
So, there you have it. Food prices are on the rise, and it doesn't look like things are gonna calm down anytime soon. Set your budgets accordingly, and keep an eye on those supermarket deals!
Related Topics: Inflation, Retail Sector
[1] Office for National Statistics. (2025). Consumer Prices Index, UK [Data set].[2] British Retail Consortium. (2025). BRC Report: Food Inflation Hits 11-month High.[3] Guardian. (2025). Tax Increases Push Food Inflation to 11-Month High: BRC.[4] BBC News. (2025). Employment Rights Bill: Should Workers Have Guaranteed Minimum Hours?[5] Telegraph. (2025). Trade War Threatens Economic Growth and Increases Costs.[6] Sky News. (2025). Brexit Impact on UK-US Trade Relations: White House Update.[7] Financial Times. (2025). Marks & Spencer Temporarily Halts Agency Workers Amid Cyberattack.
- The British Retail Consortium (BRC) has warned that food inflation is at a 1-year high and shows no signs of slowing down, with the cost of groceries expected to increase further due to rising expenses.
- The ongoing supermarket price war has helped consumers make the most of their food-and-drink expenses, but the BRC has warned that this war might not be enough to offset the highest food inflation in 11 months.
- Kantar Worldpanel, a global market research organization, has reported that spending on promotions reached its highest level this year, significantly contributing to the increase in food-and-drink prices.
- The BRC has expressed concern about the proposed Employment Rights Bill, which could negatively impact the retail sector, particularly part-time work, due to the minimum hours rule and increased hurdles for firing new staff.
