Food and Drink Inflation Insights: February 2026

Food and Drink Federation Comments on Recent Inflation Figures

In a recent update, the Food and Drink Federation (FDF) highlighted the current state of food and drink inflation, noting a rate of 3.3% for February 2026. This marks a slight decrease from the previous rate of 3.6% in January, signifying a minor shift in consumer prices.

Expert Insight

Karen Betts, Chief Executive of the Food and Drink Federation, expressed her concerns regarding the ongoing geopolitical issues affecting food prices. She stated:

“While food inflation fell slightly in February 2026, I am concerned that this is the calm before the storm. The longer the conflict in the Middle East continues, the greater its potential impact on food prices. With inflation rates already surpassing historical norms, rising costs in energy, maritime fuel, and fertilisers will pose additional challenges.”

“Food and drink are essential commodities, purchased weekly by households across the UK. Although it may take time for these cost increases to manifest on shop shelves, the repercussions of the Iran conflict will undoubtedly be felt by consumers this year. If the government genuinely intends to address the rising cost of living, it must offer our sector support commensurate with that provided to other manufacturing industries. The current energy crisis adds yet another layer of structural shocks for our sector to manage, on top of challenges from the Ukraine conflict, the alignment of food laws with the EU, and new regulatory demands.”

Current Inflation Data

The latest statistics reveal that:

• Food and non-alcoholic drink prices experienced a rise of 3.3% over the 12 months leading to February 2026, showing a decrease from January’s 3.6%.
• In February, prices remained unchanged month-to-month.
• Price reductions were noted in nine categories, with significant drops seen in olive oil (-10.4%), flours (-8.3%), and pizza (-4.9%).
• Conversely, prices surged for beef and veal (20.6%), offal (17.0%), and whole milk (13.1%).
• Additionally, UK haulage companies have recently raised the Emergency Fuel Surcharge by as much as 20%. Ocean freight lines have also implemented an Emergency Bunker Surcharge of approximately $400 per container to account for rising oil costs.

Conclusion

As the food and drink sector navigates these challenges, it is crucial for support from the government and stakeholders to be aligned with the industry’s dire needs. The interplay between inflation, energy costs, and geopolitical conflicts will undoubtedly shape the landscape for consumers and producers alike in the upcoming months.

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