According to the British Retail Consortium (BRC), food inflation hit 2.8% in May compared with the previous year. That was higher than 2.6% in April and above the three-month average of 2.6%.
“Fresh foods were the main driver, and red meat eaters may have noticed their steak got a little more expensive as wholesale beef prices increased,” said Helen Dickinson, chief executive of the BRC.
The moves higher come following an increase in the National Insurance costs businesses pay to the government.
Overall, however, shop prices were in deflation, down 0.1% from the same point in May last year. The three-month average is -0.2%.
BRC said non-food deflation decreased to 1.5% year on year in May, against a decline of 1.4% in April. This is above the 3-month average of -1.6%.
“Non-food prices remained in deflation, but this slowed in categories such as fashion and furniture as retailers began to unwind heavy promotional activity. Prices were falling faster for electricals as retailers tried to encourage spending before any potential knock-on impact from U.S. tariffs,” said Dickinson.