Inflation is essentially the word of our times. Recent years’ rampant increase in prices across just about everything has spurred the cost of living crisis and made many of us worse off, and apparently we’re not out of the woods yet.
The Office for National Statistics reckons we’ve seen inflation of 4.1% over the past 12 months, and its chart showing the rise and fall of inflation since 1989 brings the madness of the past few years into stark relief. Prices are practically always steadily increasing, but since 2020 we’ve been absolutely hammered by the biggest spike in the last 36 years.
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While we’re past the 9.6% of October 2022, prices are still on the rise. When it comes to food, inflation is lower than the average, but it still hit 2.8% in the year to May 2025 according to the British Retail Consortium (BRC).
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This is the highest it’s been since the annual rate of 3.2% reported in May 2024, and it seems beef prices have had one of the biggest influences.
A ‘perfect storm’ of low supply and high demand – perhaps the simplest concept in economics – has sent beef prices shooting upwards, drawing concern from the industry.
The Butcher’s Quarter, a butchers in Manchester, said in a blog post: “We are currently facing a very tricky time in our meat markets.
“As of February 2025, the UK beef market is experiencing significant price increases, influenced by a combination of supply constraints, rising demand, and external economic factors. The wholesale cost of beef has increased 25% in just five weeks!”
Along with demand and supply pressures on UK soil, demand from abroad has also increased while imported supply has taken a hit.
“There is currently a number of Foot and Mouth outbreaks in central and eastern Europe,” the Butcher’s Quarter continued. “Exports from there are halted, and significant numbers of cattle are having to be destroyed as part of this heartbreaking disease.”
With weakened supply and increased demand, the price along the chain goes up and ultimately the bill gets footed by consumers.
Speaking to the BBC, Tomas Maunier, co-founder of steak chain Fazenda, said his firm has pushed 2% of its increased running costs onto its customers as the meat industry goes through ‘tough times’.
"Beef in particular has gone up about 20% in the last 12 months,” he said. “A big chunk of that has happened in the last six but businesses cannot pass it all on to our guests.”
Pressures on farmers seem particularly stark. Also speaking to the BBC, arable farmer and suckler beef producer Jilly Greed said: "It is entirely the maths - it's about supply and demand.
"There's a 5% shortfall in cattle on the land, and a 1% increase in consumer demand, and the combination of those factors have really brought price increases.”
If you’re keen to dodge these inflated costs, you can always take a break from the red meat. Its elevated cancer risk compared with white meat and fish is reason enough to consider cutting back, so perhaps now’s the time to make the change if you’re an ardent red meat eater.
Rachael Davis