Chocolate prices in the UK have risen at their fastest rate on record, new data from the Office for National Statistics (ONS) reveals, as food inflation continued to climb for a third consecutive month.
According to ONS figures, chocolate prices surged by 17.7% in the year to May — the steepest annual rise since records began in 2016. The increase comes amid poor harvests in key cocoa-producing nations such as Ghana and Ivory Coast, which together supply over half the world’s cocoa.
Jonathan Parkman, head of agriculture at commodities broker Marex, attributed the price spike to a combination of severe weather, crop disease, and longstanding mismanagement in the cocoa sectors of both countries. “There is little chance of a fall in chocolate prices this side of Christmas,” he warned.
Overall food inflation reached 4.4% in May, the highest since February 2023. This uptick coincides with the implementation of increased employer National Insurance Contributions and a higher minimum wage in April, measures announced by Chancellor Rachel Reeves in last year’s Budget to raise £25 billion.
Ruth Gregory, deputy chief economist at Capital Economics, suggested the recent rise in food prices “perhaps provides a tentative sign that firms are passing on more of April’s rise in National Insurance Contributions in their selling prices.”
Despite this, the UK’s headline inflation rate remained steady at 3.4% in May, matching the figure recorded in April following revisions. This is still above the Bank of England’s 2% target, and analysts do not expect an interest rate cut from its current level of 4.25% when policymakers meet later this week.
While food costs have increased, some relief came from falling travel expenses. Airfare prices dropped 5% between April and May, compared to a sharp 14.9% rise over the same period last year. The timing of Easter and school holidays was cited as a key factor in this decline.
Commenting on the inflation figures, Chancellor Reeves said the government is “investing in Britain’s renewal to make working people better off.” However, Shadow Chancellor Mel Stride criticised Labour’s tax policies, calling the figures “deeply worrying for families.”
Retailers, too, expressed concern. “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,” said Kris Hamer, director of insight at the British Retail Consortium.
Zayna Omer, owner of Harbour Grind coffee stand in Whitstable, said she’s seeing customer habits shift. “Young families are definitely watching prices more closely. Some bring their own food,” she said, adding that she offers small discounts for cash payments to offset rising card fees.
Concerns are also growing over potential future inflation driven by rising oil prices, especially if tensions between Iran and Israel disrupt the vital Strait of Hormuz. “Surging oil and shipping costs would hit many smaller businesses hard,” warned David Bharier of the British Chambers of Commerce.
