Food inflation climbs to 4.9%, adding strain to UK households

Food inflation in the UK rose to 4.9% in July, up from 4.5% in June, according to the latest Consumer Price Index data from the Office for National Statistics. The increase is a key factor behind the rise in headline inflation, which reached 3.8%.

Kris Hamer, director of insight at the British Retail Consortium (BRC), says families are facing growing financial pressure as the cost of weekly essentials continues to climb.

“This surge has been a key driver behind headline inflation, alongside a rise in transport costs, piling fresh pressure on families already being forced to cut back,” he says.

Hamer adds that government employment policies and external factors such as poor harvests and global instability contribute to rising prices. However, certain everyday food items, such as olive oil, butter, and cheese, did fall in price during the month.

“Retailers have been doing everything they can to prevent price rises, but the swathe of costs they now face has left them no room to maneuver.” 

He calls on the chancellor to ease the tax burden on retailers and prioritize business rate reforms in the upcoming autumn statement.