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

Aleksandar Hrubenja
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Aleksandar Hrubenja
9 mins
September 7th, 2023
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Food Price Index for the UK - An Overview of Food Inflation

It's no secret that food prices in the UK have been rising persistently for some time now. However, there is a glimmer of relief for consumers as the cost of certain staple goods begins a gradual descent from the highs witnessed earlier in 2023. Things seem to be stabilizing, at least somewhat, or at the very least slowly matching inflation rates.

Of course, a pivotal factor underpinning this surge in food prices in the UK is the ongoing Russo-Ukrainian conflict, which has triggered a chain reaction of food shortages and supply disruptions. With worrying poverty rates in the UK, there needs to be greater focus on rising food costs.

In the article below you can see what food inflation looks like in the UK for some staple foods, and what are some of its more direct causes.

Food Inflation in the UK - An Overview of Staple Foods

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

How much does Milk cost?

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

Month2022 Jul2022 Aug2022 Sept2022 Oct2022 Nov2022 Dec20232 Jan2023 Feb2023 March2023 Apr2023 May2023 Jun2023 Jul
price59626265676969707068686866
% increase /decrease per monthN/A5.08%0.00%4.84%3.08%2.99%0.00%1.45%0.00%-2.86%0.00%0.00%-2.94%

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.

How much does Bread cost?

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

Month2022 Jul2022 Aug2022 Sept2022 Oct2022 Nov2022 Dec20232 Jan2023 Feb2023 March2023 Apr2023 May2023 Jun2023 Jul
price124126128130136139139138138139137136136
% increase /decrease per monthN/A1.61%1.59%1.56%4.62%2.21%0.00%-0.72%0.00%0.72%-1.44%-0.73%0.00%

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.

How much do Eggs cost?

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

Month2022 Jul2022 Aug2022 Sept2022 Oct2022 Nov2022 Dec20232 Jan2023 Feb2023 March2023 Apr2023 May2023 Jun2023 Jul
price264276291292299315317318317326323326329
% increase /decrease per monthN/A4.55%5.43%0.34%2.40%5.35%0.63%0.32%-0.31%2.84%-0.92%0.93%0.92%

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.

How much do Potatoes cost?

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

Month2022 Jul2022 Aug2022 Sept2022 Oct2022 Nov2022 Dec20232 Jan2023 Feb2023 March2023 Apr2023 May2023 Jun2023 Jul
price131134136133135138136136138140139145143
% increase /decrease per monthN/A2.29%1.49%-2.21%1.50%2.22%-1.45%0.00%1.47%1.45%-0.71%4.32%-1.38%

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.

How much do Bananas cost?

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

Month2022 Jul2022 Aug2022 Sept2022 Oct2022 Nov2022 Dec20232 Jan2023 Feb2023 March2023 Apr2023 May2023 Jun2023 Jul
price9191919191919296104112114114114
% increase /decrease per monthN/A0.00%0.00%0.00%0.00%0.00%1.10%4.35%8.33%7.69%1.79%0.00%0.00%

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.

How much does Bacon cost?

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

Month2022 Jul2022 Aug2022 Sept2022 Oct2022 Nov2022 Dec20232 Jan2023 Feb2023 March2023 Apr2023 May2023 Jun2023 Jul
price817811838835839845855868885905910913917
% increase /decrease per monthN/A-0.73%3.33%-0.36%0.48%0.72%1.18%1.52%1.96%2.26%0.55%0.33%0.44%

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.

How much does Butter cost?

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

Month2022 Jul2022 Aug2022 Sept2022 Oct2022 Nov2022 Dec20232 Jan2023 Feb2023 March2023 Apr2023 May2023 Jun2023 Jul
price214220223229229230234236236233232226222
% increase /decrease per monthN/A2.80%1.36%2.69%0.00%0.44%1.74%0.85%0.00%-1.27%-0.43%-2.59%-1.77%

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.

How much do Avocados cost?

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

Month2022 Jul2022 Aug2022 Sept2022 Oct2022 Nov2022 Dec20232 Jan2023 Feb2023 March2023 Apr2023 May2023 Jun2023 Jul
price88868489909391939493959490
% increase /decrease per monthN/A-2.27%-2.33%5.95%1.12%3.33%-2.15%2.20%1.08%-1.06%2.15%-1.05%-4.26%

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.

Final Thoughts

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.

FAQ

Are food prices going down in the UK?
How much has food increased in 2023 UK?
Will prices go back down in the UK?

Sources:

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Contributors

Aleksandar Hrubenja
With a BA in English literature and linguistics, training provided by veteran licensed court interpreters, and direct content management experience, Aleksandar Hrubenja knows what good content looks like. He’s tackled any topic thrown his way, spending the last six years writing articles on finance, cryptocurrency, and digital marketing — just to name a few.