Meat and dairy prices still higher in long term despite falling inflation
Annual UK food price inflation fell to 4% last month down from 5% in February, but meat, dairy and eggs still remain significantly pricier compared to 2019 levels.
The figures, published by the Office for National Statistics (ONS), show that bread prices rose by just under 1% in the year to March, but were 25.5% higher compared to 2019.
Looking at the latest data, AHDB said bread prices in March 2024 were likely enabled by lower wheat and energy prices.
“This isn’t surprising given that energy costs remain above 2019 levels,” said Jack Watts, AHDB’s head of economics.
“Wet weather will make UK bread supply chains more reliant on imported wheat, which is more expensive than if the UK was to have a more typical harvest in 2024. This may well make it difficult for bread prices to fall.”
ONS figures also show that overall meat prices rose 3.1% to the year to March 2024 and are 24.4% higher than in 2019.
AHDB said that meat production, especially poultry, continues to recover from both feed and energy cost inflation following the war in Ukraine.
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