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| UK inflation: Chocolate price rises hit record as food costs grow | UK inflation: Chocolate price rises hit record as food costs grow |
| (32 minutes later) | |
| Chocolate prices in the UK rose at the fastest pace on record in May as the overall cost of food continued to climb, official figures suggest. | Chocolate prices in the UK rose at the fastest pace on record in May as the overall cost of food continued to climb, official figures suggest. |
| The main rate of inflation remained at 3.4% in the year to May, the highest for more than a year. | The main rate of inflation remained at 3.4% in the year to May, the highest for more than a year. |
| However, food prices grew for the third month in a row, as some economists speculated that businesses were passing on recent increases in employer National Insurance payments to customers. | However, food prices grew for the third month in a row, as some economists speculated that businesses were passing on recent increases in employer National Insurance payments to customers. |
| The rise, along with a higher minimum wage, came into effect in April, after Chancellor Rachel Reeves announced the increases in last October's Budget aimed at raising £25bn. | The rise, along with a higher minimum wage, came into effect in April, after Chancellor Rachel Reeves announced the increases in last October's Budget aimed at raising £25bn. |
| Food prices have risen for three months in a row and, at 4.4% in May, are the highest since February last year. | Food prices have risen for three months in a row and, at 4.4% in May, are the highest since February last year. |
| Ruth Gregory, deputy chief economist at Capital Economics, suggested that the increase "perhaps provides a tentative sign that firms are passing on more of April's rise in National Insurance Contributions in their selling prices". | Ruth Gregory, deputy chief economist at Capital Economics, suggested that the increase "perhaps provides a tentative sign that firms are passing on more of April's rise in National Insurance Contributions in their selling prices". |
| The overall pace of price rises in May was the same as in April, following a revision by the Office for National Statistics (ONS). | The overall pace of price rises in May was the same as in April, following a revision by the Office for National Statistics (ONS). |
| Inflation is above the Bank of England's target rate of 2% but it is not expected to cut interest rates from 4.25% when it meets on Thursday. | Inflation is above the Bank of England's target rate of 2% but it is not expected to cut interest rates from 4.25% when it meets on Thursday. |
| ONS data revealed that chocolate prices rose by 17.7% in the year to May - the sharpest increase since 2016 when its records began. | ONS data revealed that chocolate prices rose by 17.7% in the year to May - the sharpest increase since 2016 when its records began. |
| Bad weather in cocoa-producing regions such as Ghana and Ivory Coast have hit harvests. | Bad weather in cocoa-producing regions such as Ghana and Ivory Coast have hit harvests. |
| "These two countries produce well over half of all the cocoa in the world," said Jonathan Parkman, head of agriculture at Marex, a commodities broker. | "These two countries produce well over half of all the cocoa in the world," said Jonathan Parkman, head of agriculture at Marex, a commodities broker. |
| He added that problems in Ghana and Ivory Coast also included long-term government mismanagement of the cocoa sector and a surge in disease. | He added that problems in Ghana and Ivory Coast also included long-term government mismanagement of the cocoa sector and a surge in disease. |
| "There is little chance of a fall in chocolate prices this side of Christmas," he said. | "There is little chance of a fall in chocolate prices this side of Christmas," he said. |
| Rising food inflation was partially offset by cheaper travel prices in May. | Rising food inflation was partially offset by cheaper travel prices in May. |
| Air fares fell by 5% between April and May this year compared to a 14.9% rise in the period last year. | |
| The ONS said that the cost of plane tickets fell compared with the large rise last year "as the timing of Easter and school holidays affected pricing". | |
| Easter fell at the end of March last year but in 2025, Easter Sunday was on 20 April. | |
| Commenting on the inflation rate, Chancellor Rachel Reeves said: "This government is investing in Britain's renewal to make working people better off." | Commenting on the inflation rate, Chancellor Rachel Reeves said: "This government is investing in Britain's renewal to make working people better off." |
| But shadow chancellor Mel Stride called the latest inflation figures "deeply worrying for families". | But shadow chancellor Mel Stride called the latest inflation figures "deeply worrying for families". |
| "Labour's choices to tax jobs and ramp up borrowing are killing growth and stoking inflation - making everyday essentials more expensive," he said. | "Labour's choices to tax jobs and ramp up borrowing are killing growth and stoking inflation - making everyday essentials more expensive," he said. |
| Kris Hamer, director of insight at the British Retail Consortium, which represents the sector, said: "Since October, retailers have warned that the costs from the chancellor's Budget could not be fully absorbed and would inevitably lead to higher prices for shoppers." | Kris Hamer, director of insight at the British Retail Consortium, which represents the sector, said: "Since October, retailers have warned that the costs from the chancellor's Budget could not be fully absorbed and would inevitably lead to higher prices for shoppers." |
| John Roberts, chief executive of AO World, the electrical goods retailer, told the BBC's Today programme on Wednesday: "If you put taxes on businesses and you put taxes on employment that isn't a growth engine, it's as simple as that for me." | |
| 'Young families now price-check' | 'Young families now price-check' |
| Coffee stand owner Zayna Omer says young families are spending less on food | Coffee stand owner Zayna Omer says young families are spending less on food |
| Zayna Omer, owner of coffee stand Harbour Grind in Whitstable told the BBC that business is "good" but she has noticed consumers' budget are squeezed. | Zayna Omer, owner of coffee stand Harbour Grind in Whitstable told the BBC that business is "good" but she has noticed consumers' budget are squeezed. |
| Customers are not buying as much food from her, opting instead to bring packed lunches when they take a day trip to the Kent seaside town. | Customers are not buying as much food from her, opting instead to bring packed lunches when they take a day trip to the Kent seaside town. |
| "Most people here are retirees, so they have income," Ms Omer said. | "Most people here are retirees, so they have income," Ms Omer said. |
| "But the young families, you do notice with them they will price check first or compare prices along the strip, and then come back." | "But the young families, you do notice with them they will price check first or compare prices along the strip, and then come back." |
| Ms Omer said hidden costs - such as card machine fees which cost her about 10p extra per coffee sold - have led to her offering cash customers a small discount. | Ms Omer said hidden costs - such as card machine fees which cost her about 10p extra per coffee sold - have led to her offering cash customers a small discount. |
| For now, she will keep her prices as they are. "I'd go out of business if I increase my prices," she said. | For now, she will keep her prices as they are. "I'd go out of business if I increase my prices," she said. |
| There is concern that inflation could rise if oil prices increase due to the conflict between Israel and Iran. | There is concern that inflation could rise if oil prices increase due to the conflict between Israel and Iran. |
| Disruption to the Strait of Hormuz could lead to "surging oil and shipping costs", said David Bharier, head of research at the British Chambers of Commerce. | Disruption to the Strait of Hormuz could lead to "surging oil and shipping costs", said David Bharier, head of research at the British Chambers of Commerce. |
| The Strait of Hormuz in southern Iran is an important sea passage for oil shipments from the Gulf. | The Strait of Hormuz in southern Iran is an important sea passage for oil shipments from the Gulf. |
| A fifth of the world's oil consumption passes through the area every day and any hint that Iran might block the seaway would send crude prices soaring. | A fifth of the world's oil consumption passes through the area every day and any hint that Iran might block the seaway would send crude prices soaring. |
| "Many smaller businesses will have little capacity to absorb these pressures," Mr Bharier said. | "Many smaller businesses will have little capacity to absorb these pressures," Mr Bharier said. |