UK food prices rise amid tax hikes

In April, food prices in the UK increased the most since January 2024. According to Bloomberg, supermarkets were forced to cope both with tax hikes and a surge in the country's minimum wage.

The British Retail Consortium (BRC) reports that the cost of food in the UK increased by 0.7% this month. Certain everyday goods such as bread, meat, and fish all grew in price. The annual rate reached 2.6%, the highest in the last 11 months.

The BRC survey's findings put additional pressure on UK households and emphasize ongoing inflation risks. Despite a monthly decline in the cost of non-food items, the consortium said that overall shop deflation slowed to 0.1%.

The BRC data could make the Bank of England more cautious about the pace of monetary policy easing, Bloomberg notes. As expected now, the regulator will likely cut rates more than once this year.