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Beef drives food inflation to highest in a year

May 27, 2025
in Business
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Charlotte Edwards

Business reporter, BBC News

Getty Images A person cuts into a steak that's presented on a wooden boardGetty Images

Higher beef and fresh produce prices has pushed UK food inflation to an annual high, according to industry data, with the boss of one steakhouse chain telling the BBC it has increased prices.

Food prices rose 2.8% in the year to May, the highest annual rate since May 2024 when food inflation was 3.2%, according to the British Retail Consortium (BRC), which represents supermarkets and other retailers.

Farming industry experts said beef prices in particular have been rising due to high demand and low supply caused by lack of government support.

Tomas Maunier, co-founder of steak restaurant chain Fazenda, said the meat industry faces “tough times”

Mr Maunier, whose Brazilian-inspired steakhouse chain has eight restaurants across the UK, said his firm had passed on about 2% of increased running costs to customers.

“Beef in particular has gone up about 20% in the last 12 months. A big chunk of that has happened in the last six but businesses cannot pass it all on to our guests,” he added.

Mr Maunier said that an increase in production costs and an increase in the national minimum wage was also pushing up overall costs, which then may be passed onto consumers.

Nick Allen, chief executive of the British Meat Processors Association, said competition between supermarkets had previously been keeping the price of beef down, so it was only a matter of time until customers were hit by cost increases.

“Its not surprise. The farm price for beef has been going up and up to the point that its now at record levels,” Mr Allen said.

He warned it was a “real struggle” for the industry to keep up with demand for beef, and claimed that “government schemes have not supported production but environmental schemes instead”.

Helen Dickinson, chief executive of the BRC, said red meat eaters “may have noticed their steak got a little more expensive” this month.

Jilly Greed, a fourth generation arable farmer and suckler beef producer in Devon, told the BBC: “It is entirely the maths – it’s about supply and demand.”

“There’s a 5% shortfall in cattle on the land, and a 1% increase in consumer demand, and the combination of those factors have really brought price increases,” she added.

Ms Greed said price increases have affected the whole supply chain.



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