Analysis-Why UK food inflation has yet to surge

Why UK food inflation has yet to surge

Fierce Supermarket Competition Keeps Lid On UK Food Inflation

Expectations of a sharp acceleration in UK food inflation following the latest surge in energy costs have so far failed to materialise, with intense supermarket competition and tighter cost management helping retailers and suppliers to absorb much of the pressure.The food industry warned earlier this year that higher energy costs linked to the conflict in Iran could drive food price inflation up to 10% by Christmas. Instead, annual inflation for…

UK food inflation defies forecasts as supermarket price war keeps lid on rises

UK food inflation has remained significantly lower than expected as fierce supermarket competition and shoppers’ resistance to higher prices force grocers and suppliers to absorb mounting costs. Food and non-alcoholic drink prices rose 1.7 per cent in the year to June, down from 2.2 per cent in May and marking the lowest annual rate since August 2024, according to the Office for National Statistics. Prices in the category fell 0.2 per cent month…