FDF response to January 2026 ONS food and drink inflation figures

Dr Liliana Danila, Lead Economist, The Food and Drink Federation, (FDF), said:

"It's positive to see a lower rate of food inflation in January, however it still remains a real worry for household budgets and above long-term averages. After many years of rising costs, businesses across the supply chain have had their margins eroded, leaving manufacturers particularly susceptible to the supply chain shocks caused by geopolitics or climate change. We’ve previously seen the impact that this can have on inflation, with prices of ingredients like cocoa and coffee skyrocketing, so the UK’s recent extreme wet weather flooding farms is a concern for the year ahead.

“To help stabilise food inflation in the long term and protect shoppers from future price spikes, government must incentivise investment in business resilience.”

Background

• Food and non-alcoholic drink prices rose by 3.6% in the 12 months to January 2026, down from 4.5% in the 12 months to December 2025. On a monthly basis, food and non-alcoholic drink prices fell by 0.1% in January.
• Prices fell for nine categories, with the largest drops for: olive oil (-12.0%), flours (-6.6%) and pizza (-3.6%). 
• Prices rose the fastest for beef and veal (24.5%), whole milk (15.7%) and chocolate (14.7%).