Bulletin: Food inflation slows as IGD predicted

Food inflation slows as IGD predicted

New inflation data from the ONS shows that overall inflation (CPI) remained static at 3.8% year-on-year in September 2025.

Food and drink inflation eased from 5.1% in August to 4.5% in September, with our predictions that food inflation will start to moderate, and we may have seen the peak.

Categories such as red meat, coffee and chocolate are still seeing strong price increases. This is due to production issues, such as bad weather in exporting nations and local supply restrictions in the UK. Meanwhile, inflation has undershot expectations for grain, due to good stocks from last year and plentiful international supply.

See our new article, Food inflation easing – what now?

IGD opinion

Whilst this is good news, prices for shoppers are still going up year on year, just more slowly. This means food price inflation is outstripping the general cost of living which is at 3.8%. Food and drink prices remain a significant problem for a lot of households, and we will continue to see this being reflected in muted shopper confidence and careful shopping behaviours.

Looking ahead, food and drink businesses will be turning eyes to the Autumn Budget to understand how announcements will affect the cost of doing business, including labour cost and business rates.

Mmmake Your Mark hits 120M reach

This year’s Mmmake Your Mark campaign showed the power of collaboration as dozens of organisations got involved. The campaign had a reach of 120M across media and social platforms, inspiring the next generation to join the food industry.

Read more about workforce challenges within the food system in our Tomorrow’s Workforce report.

Become a virtual volunteer and help students explore career paths and develop employability skills.

See our latest article, Mmmake Your Mark makes big impression with 120m reach.

EU deforestation regulation update

The European Commission has announced that EU deforestation regulation (EUDR) will enter into application from 30 December 2025 for large businesses, and 30 December 2026 for micro and small businesses.

However, non-compliant large businesses will not be fined for at least six months after the Directive enters force. This has been described as a temporary grace period.

Scotland opens circular economy consultation

The Scottish Government has launched a public consultation on its draft Circular Economy and Waste Route Map to 2030. The strategy outlines key actions to reduce waste, boost reuse, and modernise recycling. Stakeholders are invited to share views before the consultation closes on Tuesday 13 January 2026.

UK food brands join free breakfast club rollout

UK food businesses such as Sainsbury’s, Morrisons and Weetabix are partnering with the UK government to support the first 750 free breakfast clubs in primary schools. The initiative aims to improve access to healthy morning meals, with plans to expand to 2,000 more schools by April 2026. The move follows concerns over child nutrition and affordability for families.