Food & non-alcoholic drink inflation climbs to 4.5%

Balwinder Dhoot, Director of Sustainability and Growth, The Food and Drink Federation (FDF), said:

“Food and drink inflation has risen once again in June, continuing a concerning trend in 2025. Food and drink inflation has consistently outpaced the overall rate of inflation throughout the year, and seen sharp increase in the past 12 months. It was 1.5% in June 2024, up to 4.5% last month, and we expect inflation to rise further this year.

“The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb, climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.

“The Government’s new Food Strategy is an opportunity to create a more resilient food system. This should include looking again at the costs and regulations facing food and drink manufacturers in order to address creeping price inflation.”

Background

• Food and non-alcoholic drink inflation stood at 4.5% in June 2025 year-on-year, the highest recorded since February 2024.
• The ONS reports on 49 main food and non-alcoholic drink product categories, which have seen a mixed performance. Five categories saw inflation in double digits: beef and veal (20.4%), butter (20.0%), chocolate (16.3%), coffee (12.3%), and lamb and goat (10.2%).
• Prices fell the fastest for: olive oil (-9.6%), rice (-3.1%), sugar (-2.6%), and frozen seafood (-1.3%).