Food inflation up as labour costs rise
Period Covered: 01 – 07 April 2025
- Shop price inflation increased to -0.1% year on year in April, against a decline of -0.4% in March. This is above the 3-month average of -0.4%.
- Non-Food inflation increased to -1.4% year on year in April, against a decline of -1.9% in March. This is above the 3-month average of -1.8%.
- Food inflation increased to 2.6% year on year in April, against growth of 2.4% in March. This is above the 3-month average of 2.4%.
- Fresh Food inflation increased to 1.8% year on year in April, against growth of 1.4% in March. This is above the 3-month average of 1.5%.
- Ambient Food inflation was unchanged at 3.7% year on year in April, against growth of 3.7% in March. This is above the 3-month average of 3.4%.
| Overall SPI | Food | Non-Food | ||||
| % Change | On last year | On last month | On last year | On last month | On last year | On last month |
| Apr-25 | -0.1 | 0.0 | 2.6 | 0.7 | -1.4 | -0.4 |
| Mar-25 | -0.4 | -0.2 | 2.4 | 0.0 | -1.9 | -0.2 |
Note: Month-on-month % change refers to changes in the level of prices.
Helen Dickinson, chief executive of the BRC, said: “The days of shop price deflation look numbered as food inflation rose to its highest in 11 months, and non-food deflation eased significantly. Everyday essentials including bread, meat, and fish, all increased prices on the month. This comes in the same month retailers face a mountain of new employment costs in the form of higher employer National Insurance Contributions and increased NLW.
“Despite price competition heating up, retailers are unable to absorb the total impact of these £5bn of employment costs and the additional £2bn costs when the new packaging tax comes into effect in October. It is crucial that poor implementation of the upcoming Employment Rights Bill does not add further pressure to costs – pushing prices further up, and job numbers further down.”
Mike Watkins, head of retailer and business insight, NielsenIQ, said: “Shoppers continue to benefit from lower shop price inflation than a year ago, but prices are slowly rising across supply chains, so retailers will be looking at ways to mitigate this as far as possible. And whilst we expect consumers to remain cautious on discretionary spend, the late Easter will have helped to stimulate sales.”