Data: Food inflation due to rise throughout 2025

Food inflation remained stable in February, while the overall headline inflation rate decreased slightly, according to the latest consumer price index (CPI) figures.

Despite ongoing cost pressures, food inflation stayed at 3.3% throughout the month, with some dairy products such as milk, cheese, and eggs seeing slight price drops.

However, the British Retail Consortium (BRC) noted that food inflation is forecast to rise in 2025 due to continuing pressures, including tax changes set to affect the industry in April.

Headline inflation fell marginally from 3% in January to 2.8% in February. Clothing and footwear inflation, which had been relatively stable, plunged from 1.8% to -0.6% due to heavy discounts and unseasonal weather, which led to a drop in fashion sales.

BRC director of insight Kris Hamer explained: “Headline inflation fell marginally in February, driven by marginal drops in housing and household services and clothing and footwear entering deflation.

“Despite continued cost pressures, namely energy price volatility, food inflation remained unchanged.”

He noted that heavy clothing and footwear discounts “continued into February,” with fashion sales continuing to suffer “due to unseasonal weather throughout the month”.

The trade association director added: “Retail operates on tight margins and it would be impossible to absorb all £5bn of new costs which hit the industry in April.

“Food inflation has jumped significantly in recent months and is forecast to hit 5% by the end of 2025 as a result of the costs arising from the Budget. On top of this, retailers are still burdened by an outdated business rates system.”

It comes after inflation reached its highest point in almost a year in January,awith food inflation pushing prices higher.

Headline inflation increased to 3% for the month, from 2.5% in December, and inflation for alcohol and tobacco was also boosted to 4.9%.

Earlier this month, it was reported that the cost of breakfast essentials had climbed in February as food inflation accelerated, according to the BRC-NIQ Shop Price Index.

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