Food inflation up as labor costs rise, flags British Retail Consortium

The British Retail Consortium’s (BRC) latest data reveals that UK food inflation increased to its highest in 11 months, with some staple foods rising in price. 

The BRC-NIQ Shop Price Index for April 2025 shows that food inflation increased to 2.6% year-on-year in April, against growth of 2.4% in March. This is above the three-month average of 2.4%.

Fresh Food inflation increased to 1.8% year-on-year in April, against growth of 1.4% in March, higher than the three-month average of 1.5%.

Ambient food inflation was unchanged at 3.7% year-on-year in April, against growth of 3.7% last month. This is above the three-month average of 3.4%.

Helen Dickinson, chief executive of the BRC, says, “The days of shop price deflation look numbered as food inflation rose to its highest in 11 months, and non-food deflation eased significantly.”

“Everyday essentials, including bread, meat, and fish, all increased in price during the month. This comes in the same month retailers face a mountain of new employment costs in the form of higher employer National Insurance Contributions and increased national living wage (NLW).”

“Despite price competition heating up, retailers are unable to absorb the total impact of these £5 billion (US$6.7 billion) of employment costs and the additional £2 billion (US$2.6 billion) costs when the new packaging tax comes into effect in October.”

“It is crucial that poor implementation of the upcoming Employment Rights Bill does not add further pressure to costs — pushing prices further up, and job numbers further down.”

Shop price inflation increased to -0.1% year-on-year in April, against a decline of -0.4% in March. This is above the three-month average of -0.4%. Non-food inflation increased to -1.4% year-on-year in April, against a decline of -1.9% in March.