The Institute of Grocery Distribution has reacted to this week’s inflation figures, with a warning its effect on food prices could be felt for some time to come.
Food inflation for December was at 4.5% year-on-year, bringing the average to 4.2% for 2025.
In response, James Walton (left), chief economist at the IGD, said: “The figure was in line with IGD forecasts for the year. Looking ahead, our latest forecast for retail food and drink inflation is for it to average at 3.8% in 2026 and 3.3% in 2027, meaning food inflation will persist for some time.
“The food and drink industry is under significant supply chain pressure due to global supply shortfalls and difficult operating environment. Long-term, the real ‘fix’ for food inflation is to maximise production, especially here in the UK, bringing supply into closer line with demand.”
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