Meat inflation continued to decline in July, according to the latest data from the Association of Independent Meat Suppliers (AIMS). Supermarket prices fell across multiple categories, with the exception of chicken, as the market showed signs of stabilisation after a more pronounced drop in June.
Shifts in Pricing for Major Cuts
The price of beef fell by 0.15 per cent in July after a larger drop of 2.26 per cent in the previous month. This marginal decrease suggests that the sharp decline observed in June has largely stabilised. AIMS head of communications Tony Goodger explained that this stabilisation was due to specific increases in several popular beef products. Lean mince rose by 0.47 per cent, standard mince increased by 0.46 per cent, and rump steak went up by 0.39 per cent. These specific price hikes in mince and steak offsets the decreases seen in other beef cuts.
The prices of beef, lamb and pork decreased over the month by an average of 0.16 per cent, a figure that contrasts with the 0.41 per cent drop recorded in June. While the average suggests a cooling of inflation, the specific movement within the beef category highlights a complex market dynamic where certain premium items are resisting the downward trend.
Chicken and Summer Demand
Chicken prices increased by 0.64 per cent in July. AIMS attributes this rise to seasonal factors and sporting events. Hot weather and England’s progress in the World Cup drove demand for BBQ and summer salads, boosting sales for both chicken and beef simultaneously. This surge in demand exerted upward pressure on chicken pricing despite the broader trend of declining meat inflation.
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Lamb prices continued to climb, showing an annual inflation figure of 5.53 per cent. This represents a price increase of £0.91 per kilogram compared to the previous year. The sustained rise in lamb prices highlights the continued strength of the luxury meat market, even as consumers look for alternatives.
While beef and lamb remain expensive, pork is seeing a significant shift in consumer behavior. AIMS reports that shoppers are moving away from higher-priced beef and lamb cuts. Pork sales are gaining momentum as a result of this deliberate switch in preference.
The sales of boneless pork shoulder have gained traction on social media among BBQ consumers, rising by 0.2 per cent year-on-year. This indicates that the trend is not just price-driven but also influenced by culinary trends and social media visibility. However, not all pork products are seeing price increases. Pork loin steaks, which are often considered a substitute for beef or lamb steaks, fell by 3.21 per cent on the month.
Goodger suggested this price drop could be due to imports from the EU or the relatively low price point of chicken, which also nudged upward during the month. The divergence between the market’s general trend and the specific behavior of shoppers is evident. While the overall data suggests a cooling of meat inflation, the shift toward cheaper cuts like pork indicates that consumers are making deliberate choices to manage their grocery budgets. This movement away from premium beef and lamb products suggests that the recent drops in price for these items may not be enough to restore their popularity to previous levels, as consumers prioritize value over brand or cut preference.
