FDF response to September ONS food inflation figures

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

“There’s no doubt that the cost of producing food in the UK is rising. On top of mounting regulatory pressures, input costs are rising across the board. Diesel prices are up two fifths and petrol around a third, while gas prices have more than doubled since February and the UK’s industrial electricity prices remain the highest in Europe. Packaging and ingredient costs are also rising. We expect that these increases will start to appear in consumer prices into next year.

“As manufacturers and retailers strive to keep prices as low as possible for consumers, especially in the lead up to Christmas, the pressure is building for the sector, undermining investment in the long-term resilience of the UK food system. Government should be doing what it can now to take the heat out of any later inflationary period and safeguard the UK’s food and drink sector.

“To start, with the Budget fast approaching, they should prioritise extending targeted energy relief to the food and drink sector. Food and drink has a direct impact on household budgets, so offering our sector the same support that is enjoyed by other manufacturing sectors would show a clear commitment to tackling the cost of living.”

Background:

• Food and non-alcoholic drink prices rose by 1.3% in the 12 months to September 2026, unchanged from August. On a monthly basis, food and non-alcoholic drink prices fell by 0.2% in September 2026.
• Prices rose the fastest for fish (11.4%), water (10.8%), frozen seafood (10.0%), and preserved fruit (6.2%).
• Prices fell for 16 out of the 49 reported categories, with the largest drops for butter (-6.2%), pizza (-5.6%), fruit and vegetable juices (-3.0%), and cheese (-2.3%).
• Diesel prices have increased 41% and petrol 32% since Feb-26
• UK gas futures (with delivery in Dec) have increased 166% since Feb-26
• Electricity prices for most UK producers - excluding the smallest businesses - are roughly double the European average, around three times prices in France, and twice prices in Spain.