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Food price inflation climbs, ambient sees highest spike: BRC

A UK supermarket shelf with price tags showing rising costs, reflecting the BRC’s March 2025 report on food inflation at 2.4% and ambient food at 3.7%.
Photo: iStock

Across food inflation rose year-on-year in March, with ambient food seeing the highest increase, shows the report released today by British Retail Consortium today (1).

According to BRC shop price data, shop price inflation increased to -0.4 per cent year on year in March, against a decline of -0.7 per cent in February. This is above the 3-month average of -0.6%.


Food inflation increased to 2.4 per cent year on year in March, against growth of 2.1 per cent in February. This is above the 3-month average of 2.0 per cent.

Fresh Food inflation decreased to 1.4 per cent year on year in March, against growth of 1.5 per cent in February. This is above the 3-month average of 1.3 per cent.

Ambient food inflation increased to 3.7 per cent year on year in March, against growth of 2.8 per cent in February. This is above the 3-month average of 3.0 per cent.

Helen Dickinson, Chief Executive of the BRC, said, “Retailers continue to do all they can to protect customers from the cost pressures bearing down on the industry.

"Prices fell for most non-food categories, which kept year-on-year overall shop prices in deflation, but at a reduced rate compared to February.

"Clothing and footwear was in double digit deflation as a result of weak consumer demand.

"Across food, price inflation rose year-on-year, with ambient food seeing the highest increase. For example, alcoholic and non-alcoholic beverages both saw price increases due to changes to duties and the hangover from high global sugar prices.

“With retailers bracing for significant extra costs which kick in later this week as a result of the Budget, inflation will likely accelerate in the coming months.

"Along with new packaging taxes later this year, retailers will be shouldering an additional £7bn in costs. It is crucial that the Employment Rights Bill and business rates reform don’t further inflate costs and increase red tape.”

Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said, “There is competition on the high street as retailers look to pull in reluctant shoppers with seasonal promotions.

"However, with upwards pressure on prices, retailers may also need some focussed price cuts to help footfall in the run up to the late Easter.”