Following the new release of ONS’s consumer price inflation figures to September 2025, the Institute of Grocery Distribution (IGD) has commented on food and drink inflation detailed in it.
James Walton (below left), Chief Economist at IGD, said: “The rate of food and drink inflation came down from 5.1% in August to 4.5% in September, which aligns with our predictions that food inflation will start to moderate, and we may have seen the peak.
“Whilst this is good news, prices for shoppers are still going up year-on-year, just more slowly. This means food price inflation is outstripping the general cost of living which is at 3.8%. Food and drink prices remain a significant problem for a lot of households, and we’ll continue to see this being reflected in muted shopper confidence and careful shopping behaviours.
“Categories such as red meat, coffee and chocolate are still seeing strong price increases. This is due to production issues, such as bad weather in exporting nations and local supply restrictions in the UK.
“Meanwhile, inflation has undershot expectations for grain, due to good stocks from last year and plentiful international supply. Looking ahead, food and drink businesses will be turning eyes to the Autumn Budget to understand how announcements will affect the cost of doing business, including labour cost and business rates.”
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