Rising food prices impact consumer spending

• Food prices in June increased by 4% year-on-year.
• The rise in prices for meat and tea contributed to the overall inflation.
• Consumers have started to save money due to economic uncertainty.

In June 2025, food prices in Great Britain rose by 4% year-on-year, driven by an increase in prices for meat and tea. This marked the sixth consecutive month of rising inflation for food products, reports the British Retail Consortium (BRC).

Prices for fresh vegetables and fruits remained stable at 3.2%, while prices for long-shelf-life products increased by 5.1% compared to last year. According to official data, meat prices rose by 17%, and oil prices by 18.2% during the same period.

In the context of rising prices, many consumers have started to become more cautious about spending, which has led to a decrease in demand on the streets. As noted by experts, economic uncertainty and high prices have prompted households to cut back on their spending. This, in turn, has affected retail sales.

The General Director of BRC, Helen Dickenson, noted that the increase in prices for staple products, such as meat and tea, has been a major reason for the overall increase in food inflation. She also mentioned that decreases in clothing and furniture spending may provide consumers the opportunity to refresh their wardrobes and homes.

According to CBI data, retailers continue to face challenges as consumers, who are grappling with rising expenses, become less willing to make purchases in stores. Forecasts for the upcoming month indicate a further decline in sales volumes.

Tags: Europe/Economy