- Food inflation fell to 1.7 percent in June.
- Food prices fell 0.2 percent between May and June.
- Experts expect food prices to rise again later this year.
Food inflation in the UK has fallen to its lowest level in almost two years, offering some relief to households still suffering from cost of living pressures.
According to the Office for National Statistics (ONS), food and non-alcoholic drinks inflation slowed to 1.7 percent in the 12 months to June, compared to 2.2 percent in May. This is the lowest annual rate since August 2024. Prices also fell slightly by 0.2 percent between May and June, suggesting that price pressure in supermarkets is gradually easing.
Several everyday foods have become cheaper over the year. ONS data showed the average price of margarine and other vegetable fats fell 1.9 percent, while pizzas and quiches were 6.7 percent cheaper than a year earlier.
Some products continued to rise in price, but at a slower pace than in May. The annual increase in whole milk fell from 7.2 percent to 2.4 percent, while the increase in chocolate slowed from 8.3 percent to 4.6 percent. Egg prices also fell, rising 2.9 percent compared to 4.3 percent the previous month.
Liliana Danila, chief economist at the Food and Drink Federation, said producers had managed to keep food prices relatively stable despite rising production costs. In recent years, companies have reportedly strengthened their supply chains and reduced their risk of major disruptions following Russia's invasion of Ukraine.
The relief may be temporary
Despite the slowdown, industry experts believe shoppers should not assume that food prices will continue to fall for the rest of the year.
Food manufacturers are still facing higher energy costs after oil and gas prices rose as a result of the conflict between the United States, Israel and Iran earlier this year. Many companies have mitigated the impact by securing energy and ingredients contracts early, helping them absorb some of the recent volatility.
James Walton, chief economist at the Institute of Grocery Distribution, reportedly said the latest figures were welcome news for households under financial pressure, but warned that the UK was “not out of the woods yet” when it came to food inflation. He said higher energy prices, additional business costs from government regulation and extreme weather conditions across Europe could drive up food prices in the coming months.
Danila also called on the government to prioritize food security. Closer collaboration with industry is reportedly needed to strengthen supply chains, encourage investment and improve the long-term resilience of the UK food system.
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