Food Price Index for the UK - An Overview of Food Inflation

In the article below we have gathered data from the Office for National statistics on the core staples for most UK households.

The table below shows the average prices for milk pasteurized per pint, with prices represented in pence.

In July 2022, there was food price inflation for milk, followed by stability in August 2022. The subsequent months saw notable fluctuations, with a significant rise in September 2022, a moderate increase in October 2022, and a continued upward trend in November 2022. The year concluded with July 2023 recording a significant decrease.

In total, these changes amounted to an 11.86% increase over the course of the year, but the overall trend seems to point towards a stabilization and lowering of prices.

The fluctuating milk prices were influenced by factors including energy-intensive production and increased energy costs. This led to negotiations with retailers, ultimately resulting in higher costs for consumers. The varying price trends reflect a complex interplay of these factors over the specified timeframe.

Next, prices for bread, white loaf, sliced, 800g, gained from the Office for National Statistics. Prices expressed in pence.

Looking at the last 12 months,data about food inflation for the UK show continual growth for potatoes, with a notable surge in October of 2022. Prices have, however, started dropping at the beginning of the year, and seem to be stabilizing.

In total, the cumulative change over the year amounted to 9.68%. However, prices do seem to be stabilizing.

The shifts in bread prices were influenced by a combination of factors. The collective cost of ingredients, transport, packaging, electricity, fuel, and staff played a significant role in shaping these fluctuations.

Next, the average price of Eggs, per dozen, in pence.

Over the last 12 months, the price of eggs exhibited a consistently upward trajectory, with fluctuations primarily characterized by increases. Namely, the price consistently grew until February, with a surge in December. There were some very slight drops in price recently, followed by a modest increase.

All in all, eggs are 24.62% more expensive than they were a year ago, a very significant increase representing the severity of UK food inflation.

The underlying factors contributing to the fluctuations in egg prices include food shortages, rising energy costs, and the ongoing impact of bird flu. These factors collectively contributed to an ongoing egg shortage, influencing the market dynamics.

The table below shows the average price of potatoes, new, loose, in kilograms, in pence.

The last year showed the price of potatoes fluctuation regularly, with both rises in drops in price. However, after 12 months, the price of potatoes increased by 9.16%.

Similar to other staples, the food price inflation evident for potatoes was influenced by a combination of factors, including rising energy, labor, and ingredient costs affecting the broader food industry. These cost pressures collectively contributed to fluctuations in potato prices.

The table below shows the average price of one kilogram of bananas over the last twelve months in pence.

Bananas haven't increased during the summer and fall months of last year. However, starting with the beginning of 2023, there were significant jumps in price and evident representation of food price inflation in the UK. Namely, the price of bananas increased by 25.27%.

The shifts in banana prices were primarily influenced by the rising shipping costs, driven by the escalation in fuel prices. Additionally, labor costs, along with the expenses associated with fertilizers and pesticides used in banana cultivation, played a role in shaping the price dynamics.

The table below shows data gained from the Office for National Statistics, regarding the average price of bacon, in kilograms (back bacon cut).

Bacon showed slow, but regular increase in price, reaching a price 12.24% higher than the price during the same period last year.

The shifts in bacon prices were influenced by various factors, factors that influenced the general food inflation rate in the UK. Increased demand on British stock from China post-Brexit, along with the rising price of UK pigs (up by 27%), played a role in shaping the price dynamics.

Below is a table on the price of a 250g block of butter, in pence.

Butter had relatively low price increases, and even saw its price go down in the last couple of months.

In total, these fluctuations resulted in an overall increase of 3.74% over the year. However, total consumer price inflation in the UK is at 6.9% at the time of writing.

Increased trade costs due to Brexit, coupled with ongoing supply-chain issues such as labor shortages and transportation challenges, played a role in butter's rising price, and the genral current food inflation rate in the UK. However, supermarkets have lowered prices of their branded butter, helping consumers, which lead to an overall minimal increase in price which will hopefully drop further on.

The following numbers represent the average price of one avocado in pence in the UK.

Over the last 12 months, the price of avocados showcased a mixed pattern, characterized by alternating increases and decreases, with both drops and spikes.

Demand from China and harvest problems in countries like Mexico and Peru contributed to the market dynamics. There is also, of course, the fluctuating seasonal price of avocados. All in all, these fluctuations resulted in an overall increase of 2.27% over the year.

We hope we have provided a comprehensive overview of the persistent challenges posed by food inflation in the country. The analysis of staple food items like milk, bread, eggs, potatoes, bananas, bacon, butter, and avocados reveals a complex landscape of fluctuating prices over the past year. While some items experienced gradual decreases or stabilization, others saw significant spikes, resulting in an overall increase in food prices.

The influence of various factors such as supply chain disruptions, energy costs, labor shortages, and global events like the Russo-Ukrainian conflict has been evident in shaping the cost of food in the UK.

• UK Office for National Statistics

• The Guardian

• ITV News

• BBC

• Evening Standard

• Big Issue

• UK Office for National Statistics 2

• Retail Systems