Be informed with free updates
Sign up for just Britain’s inflation Myft Disst – Transported directly to your inbox.
According to industry data, the UK food inflation has increased to the highest rate in more than a year as the dry season hits fruits and vegetable crops and increases prices.
Annual rate of food inflation The British Retail Consortium said on Tuesday that 3.7 percent in June was 2.8 percent in May and the highest since March 2024.
BRC CEO Helen Dicinson said: “In Britain, the prices of fruits and vegetables increased due to reducing hot, dry weather, crop yields, while meat prices” have been affected by high wholesale prices and more expensive labor costs “.
The Met Office reported that this spring was the hottest and most dhupi spring on records for the UK. This has been a mixed blessing for farmers – the early sun and heat in the spring have increased the yield of some fresh produce such as strawberries and tomatoes, but the lack of rain has emphasized arable crops such as wheat and barley.
Nigel Jenny, Chief Executive Officer of the Trade Group The Fresh Production Consortium, said, “We have been under great pressure on external production from Britain’s point of view, and especially within Europe there are especially the climax of the weather, so a cumulatively adds cost pressure in the supply chain.”
According to FPC, the UK imported 65 percent of the fresh yield.
Global food value According to the United Nations Food and Agriculture Organization Index, in May it was higher than an annual rate of 6 percent, with dairy price 21 percent and vegetable oil was up to 19 percent.
BRC figures come ahead of the official UK inflation data for June, to be published on 16 July. This year, BRC and inflation figures have shown a pick-up in food prices compared to 2024.
For May, last month ONS reported price increase for meat, fish, dairy products, chocolate and confectionery For annual inflation of 3.4 percent,
Bank of England It is expected that inflation operated by energy and food, most of its 2 percent target for the year, although the total wage hike moves beyond the rate of increase price.
Advanced food prices can limit the speed of interest rate cuts this year as the price increase has a greater impact on domestic inflation than other items.
Market pricing is that BOE has reduced the cost of borrowing with a quarter points twice a year. Current 4.25 percent,
The BRC said that in June, the fresh food prices rose at an annual rate of 3.2 percent, which increased by 2.4 percent in May. Environmental food prices, which can be stored at room temperature, increased at an annual rate of 4.3 percent in June, above 3.3 percent in May.
The increase in food prices returned to the total shop prices to increase the annual rate of 0.4 percent in June due to a decline of 0.1 percent in May. Non-eating prices fell at an annual rate of 1.2 percent in June from minus 1.5 percent in the last month.
Dickinson of BRC stated that retailers had warned of price increase for consumers, high employer citing national insurance contribution and national living wages launched in April, as well as with the effects of increasing geopolitical stress and climate change.
He said, “Within three months of the costs incurred in the last autumn budget, the prices of the headline shop have returned to inflation for the first time,” he said.
Mike Watkins, the head of the retailer and commercial insight into the Railllers, which helps compile data, said: “While the current magic of good weather is helping to promote demand on many retailers, rising prices can become a concern if the consumer’s desire to spend later in the year.”
Additional Reporting at Median speed
