Britain’s food inflation highest in a year as grocers face more costs
Sign up now: Get ST's newsletters delivered to your inbox
Food inflation in Britain rose for a fourth consecutive month as grocers struggle to remain competitive.
PHOTO: AFP
DeeperDive is a beta AI feature. Refer to full articles for the facts.
LONDON – Food inflation nudged up in May to the highest level in a year, as British supermarkets battle higher operating costs stemming from the British government’s revenue-raising budget.
Food inflation rose for a fourth consecutive month to 2.8 per cent, up from 2.6 per cent in April, the British Retail Consortium said on May 27. Fresh goods were the main driver.
Grocers are trying to remain competitive while also struggling with a rise in the minimum wage and an increase in payroll taxes. The measures amount to an additional £5 billion (S$8.7 billion) in costs, according to the BRC.
“It is no surprise that inflation is rearing its head once again,” BRC chief executive officer Helen Dickinson said in a statement.
The figures undermine predictions of a price war after British grocer Asda said it would reduce prices as part of its turnaround plans, leading to share declines at larger rivals Tesco and Sainsbury’s earlier in 2025.
“Fears of an aggressive price war may be overdone,” Bloomberg Intelligence analyst Charles Allen said in a note last week. BLOOMBERG
