The consumer prices index (CPI) rose by 2.6% in the 12 months to June 2026, down from 2.8% the previous month. On a monthly basis, CPI rose by 0.1% in June 2026, compared with a rise of 0.3% in June 2025.
Food was labelled as making one of the largest downward contributions to the monthly change in inflation rates, with the largest downward effects coming from sugar, jam, syrups, chocolate and confectionery, for which prices of chocolate fell by more in June 2026 than June 2025.
According to ONS, other slightly smaller downward effects came from oils and fats, meat (particularly beef), dairy and vegetables. Prices of oils and fats as well as dairy fell in June 2026, compared with a price rise and little change a year ago, respectively. Meat and vegetable prices rose in June 2026 but by less than in June 2025.
Food and non-alcoholic beverage prices rose by 1.7% in the 12 months to June 2026, down from 2.2% during the previous month. The annual rate in June was the lowest since August 2024, when it was 1.3%. On a monthly basis, food and non-alcoholic beverage prices fell by 0.2% in June 2026, compared with a rise of 0.3% a year ago.
FDF urges PM to “take food security seriously”
Dr Liliana Danila, chief economist at The Food and Drink Federation (FDF), commented: “It’s positive to see food and drink manufacturers managing to keep food prices stable in the face of rising input costs. What’s become clear is that food manufacturers have worked hard since Russia’s invasion of Ukraine to diversify their supply chains and shore up their resilience against further major supply shocks. We continue to anticipate rising food price inflation as the year goes on, however this is likely to be lower, come later and plateau for longer than the previous inflationary cycle.
“With disruption the new norm for the food system, it’s critical that the new Prime Minister takes food security seriously and is ready to work in partnership with industry to ensure our food system is investing for growth and resilience, from vital tech adoption to future-facing skills.”
“Although the situation appears to be under control for now, we expect inflation to rise again later this year as costs start to filter through the supply chain.”
James Walton, chief economist at the Institute of Grocery Distribution (IGD), stated: “Although food inflation has fallen to its lowest level since mid-2024, prices are still rising, just at a slower pace. This easing appears to reflect favourable food commodity markets at the start of this year, with grains in good supply and prices under control, helping to offset higher costs elsewhere.
“For the many UK households under financial pressure, the slowdown will be welcome. However, we are not out of the woods yet when it comes to food inflation. Although the situation appears to be under control for now, we expect inflation to rise again later this year as costs start to filter through the supply chain.
“Key factors include the conflict in the Middle East pushing up global energy prices, Government regulation adding costs to business, and extreme weather across Europe this summer. Therefore, food and drink businesses will need to continue building resilience and capacity across the supply chain to help deliver more predictable and stable food pricing for shoppers in future.”
