Warning issued to anyone buying fruit, sugar, jam or chocolate

A is being issued to anyone buying fruit, sugar, jam or chocolate as business groups warn they will be forced to sharply increase prices this year.

UK marginally fell in the year to December but remained stubbornly above the Bank of England’s 2% target.

Consumer Prices Index (CPI) inflation rose to 2.5% in the 12 months to December, down from 2.6% the previous month, the Office for National Statistics (ONS) has said.

UK may have remained steady at 2% in December, up 0.5% compared to November 2024. This marks the fourth consecutive month that food and drink prices have accelerated.

And now Brits are being warned to brace for higher prices later in the year thanks to higher employer national insurance and a rise in the minimum wage.

The latter will come into effect from April 1, 2025 and is expected to impact more than three million workers.

Two-thirds of leading retailers are warning they will be forced to raise prices to cope with the increase in National Insurance costs amid mounting pressure on the Chancellor.

Two-thirds (67%) of 52 chief financial officers surveyed by the British Retail Consortium (BRC) said they would have to raise prices in response to increases in employers’ national insurance contributions from April.

Just this morning, the BRC claimed that inflation could rise to 4.2% this year unless the government took steps to mitigate the price pressures.

The Institute of Grocery Distribution (IGD) forecast 2025 food inflation in a range of 2.4% to 4.9%.

Fruit, sugar, jam, honey, syrups, chocolate, and confectionery were the two categories where prices rose most, according to ONS figures.

Alcohol and tobacco inflation fell to 5.3% in December, down from 6.8% a month earlier.

UK food figures come amid turbulence in the UK financial markets. Over the past week, the and the cost of borrowing has risen to decades-high levels.