Chocolate prices in the UK increased at the highest rate on record in May as the overall level of food prices kept increasing, official statistics indicate. The key rate of inflation has been at 3.4% in the period ending May, the highest in over a year.
But food costs increased for the third consecutive month, with some economists speculating that companies were adding on recent hikes in employer National Insurance contributions to consumers.
The increase, coupled with a new higher minimum wage, was introduced in April, following Chancellor Rachel Reeves’ announcement of the increases in last October’s Budget to boost £25bn. Food prices have increased for three consecutive months and, at 4.4% in May, stand at a five-month high.
Capital Economics’ deputy chief economist, Ruth Gregory, hinted that the rise “perhaps gives a tentative indication that companies are passing on more of April’s increase in National Insurance Contributions in their prices.”.
The general level of price increases in May was unchanged compared with April, after being revised by the Office for National Statistics (ONS).
Inflation is now higher than the 2% target rate set by the Bank of England, but it is unlikely to reduce interest rates from 4.25% when it next meets on Thursday.
ONS figures showed that chocolate prices climbed 17.7% over the year to May – a record rate since the records of its organization started in 2016. Poor weather in cocoa-growing nations like Ghana and Ivory Coast has affected crops.
“These two nations are responsible for producing more than half of all the cocoa in the entire world,” explained Jonathan Parkman, agriculture head at commodities brokerage firm Marex.
He said issues in Ghana and Ivory Coast also encompassed chronic government mismanagement of the cocoa industry and an increase in disease. There is little prospect of a drop in chocolate prices this side of Christmas,” he said.
Increasing food inflation was also partly countered by lower travel costs in May. Airfares decreased by 5% from April to May this year compared to an increase of 14.9% in the corresponding 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. But shadow chancellor Mel Stride labelled the new inflation figures “deeply worrying for families”.
“Labour’s decisions to tax work and to borrow more are suffocating growth and fuelling inflation – making costs of everyday items higher,” he said. Kris Hamer, head of insight at the British Retail Consortium, which speaks for the industry, said: “Since October, retailers have cautioned that the chancellor’s Budget costs could not all be squeezed and would inevitably result in higher prices for consumers.”
John Roberts, AO World electrical retailer’s chief executive, said on the BBC’s Today programme on Wednesday: “If you tax businesses and if you tax employment that’s not a growth driver, it’s as basic as that for me.”
