Food and Drink Inflation Continues to Rise in June 2025

Balwinder Dhoot, Director of Sustainability and Growth at The Food and Drink Federation (FDF), recently addressed the ongoing challenges facing the food and drink industry as inflation rates surging once again in June 2025 paint a worrying picture for consumers and manufacturers alike.

Dhoot stated, “Food and drink inflation has risen once again in June, continuing a concerning trend in 2025. Food and drink inflation has consistently outpaced the overall rate of inflation throughout the year and has seen a sharp increase in the past 12 months. It was recorded at 1.5% in June 2024, up to 4.5% last month, and we expect inflation to rise further this year.”

The pressure on food and drink manufacturers is mounting, as key ingredients such as chocolate, butter, coffee, beef, and lamb have seen significant price hikes. Dhoot continued, “With many essential ingredients climbing in price, coupled with high energy and labor costs, these rising expenses are gradually translating to higher prices for shoppers at the tills.”

Dhoot also highlighted the potential of the Government’s new Food Strategy, describing it as an opportunity to build a more resilient food system. “This should include a thorough review of the costs and regulations confronting food and drink manufacturers to address the issue of creeping price inflation,” he advised.

Background Details

• Food and non-alcoholic drink inflation stood at 4.5% in June 2025 year-on-year, marking the highest level since February 2024.
• The Office for National Statistics (ONS) tracks 49 main food and non-alcoholic drink categories, revealing a mixed performance across the board. Five categories recorded inflation rates in double digits:
  • Beef and veal – 20.4%
  • Butter – 20.0%
  • Chocolate – 16.3%
  • Coffee – 12.3%
  • Lamb and goat – 10.2%
• Conversely, some prices experienced the fastest declines, with notable reductions in:
  • Olive oil – (-9.6%)
  • Rice – (-3.1%)
  • Sugar – (-2.6%)
  • Frozen seafood – (-1.3%)

As the industry grapples with these inflationary pressures, stakeholders are urged to take proactive measures. The effectiveness of the Government’s Food Strategy will be crucial in determining the future resilience of the food and drink sector.