According to the Office for National Statistics (ONS), dairy, eggs and vegetables all had downward effects on food inflation.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 4.1% in the 12 months to April 2025, up from 3.4% in the 12 months to March. On a monthly basis, CPIH rose by 1.2% in April 2025, compared with a rise of 0.5% in April 2024.
The Consumer Prices Index (CPI) rose by 3.5% in the 12 months to April 2025, up from 2.6% in the 12 months to March. It rose by 1.2% in April 2025 on a monthly basis, compared with a rise of 0.3% in April 2024.
Food and non-alcoholic beverages prices rose by 3.4% in the 12 months to April 2025, up from 3% in the 12 months to March. The upward effects came from meat, bread, cereals, sugar and jam, while the downward effects came from vegetables, milk, cheese and eggs.
On a monthly basis, food and non-alcoholic beverage prices rose by 0.7% in April 2025, up from 0.3% a year before.
“The Government must now find ways to help reduce business costs and regulatory burden.”
Kris Hamer, director of insight at the British Retail Consortium, stated: “Headline inflation accelerated in April as additional costs from rising National Living Wage and Employers’ NI costs filtered through to prices faced by consumers, as well as rising costs of utilities (energy, water and broadband). The jump in labour costs pushed up food inflation, which climbed above 3%.
“Even with food prices rising overall, there were still deals to be had, with prices of dairy products such as milk, cheese and eggs falling on the month.
“Rising inflation was inevitable following the wave of additional costs hitting employers, and particularly retailers who employ over three million people across the country. For months retailers have been warning that rising costs would lead to higher prices. To mitigate this, the Government must now find ways to help reduce business costs and regulatory burden. It is imperative that its Employment Rights Bill targets unscrupulous employers and avoids burdening responsible businesses with additional costs which could put retail job numbers into reverse.”
“An enhanced trading arrangement with the EU marks a positive step towards driving growth for UK businesses.”
Balwinder Dhoot, director of industry growth and sustainability at the Food and Drink Federation (FDF), said: “We’re concerned to see food and non-alcoholic drink inflation climb again to 3.4% in April 2025. Food and drink manufacturers said they expect production costs to rise an average of 4.8% over the next 12 months as a result of rising energy and commodity prices alongside regulatory costs such as increases to National Insurance Contributions and a new £1.4 billion packaging tax. We therefore forecast food and non-alcoholic drink inflation will average 4.3% over 2025.
“Businesses continue to work hard to protect shoppers from rising prices and safeguard the UK’s food security. It’s imperative that Government reflects the importance of our sector to the UK economy and the nation’s food supply by making growth a top priority in its upcoming Food and Industrial strategies.
“An enhanced trading arrangement with the EU marks a positive step towards driving growth for UK businesses, and Government should engage with industry to ensure this agreement represents their interests, as well as continuing to cut red tape to enable food manufacturers to invest in productivity.”
