Chocolate lovers in the United Kingdom are feeling the sting of soaring prices, as the country experiences the steepest rise in chocolate costs since 2016. According to recent figures from the UK’s Office for National Statistics (ONS), chocolate prices surged by 17.7% in the year leading up to May 2025, largely due to a severe shortage of cocoa in West Africa.
Despite the overall inflation rate holding steady at 3.4% in May, food prices continued their upward trend for the third consecutive month, with a 4.4% annual increase. Analysts say the persistent rise is partially driven by businesses passing down increased operational costs—including higher National Insurance contributions and an uplifted minimum wage introduced in April by Chancellor Rachel Reeves.
The core issue, however, lies in West Africa. Ghana and Ivory Coast—responsible for over 60% of the world’s cocoa—have faced a sharp decline in cocoa production. Experts attribute this to poor weather conditions, systemic mismanagement in the cocoa sector, and an increase in crop diseases.
“There’s very little chance of chocolate prices falling before Christmas,” warned Jonathan Parkman, Head of Agriculture at Marex, a leading commodities brokerage firm.
While the price of chocolate is rising, the ONS noted a slight easing of general inflation, largely thanks to a 5% drop in airfares between April and May. This decrease contrasts sharply with the 14.9% hike seen during the same period in 2024 and is attributed to the later Easter holiday in 2025, which affected seasonal demand.
However, the broader economic outlook remains challenging. Shadow Chancellor Mel Stride criticized Labour’s fiscal policy, claiming that increased taxes on employment and borrowing are hindering economic growth and driving up costs. “Labour’s choices are making everyday essentials more expensive,” he said.
Retailers are echoing these concerns. Kris Hamer, Director of Insight at the British Retail Consortium, argued that the cost pressures imposed by the budget are unsustainable for many businesses, which are forced to pass them on to consumers. John Roberts, CEO of AO World, added, “Taxing jobs and business operations isn’t a formula for growth.”
On the ground, small business owners are already feeling the impact. Zayna Omer, who runs a coffee stand in Whitstable, shared her observations with the BBC: “Young families are definitely more price-conscious. Many now bring packed lunches rather than buy food.” To counter rising transaction fees, Omer encourages cash payments by offering small discounts but warns that raising her prices could drive customers away.
Looking ahead, there are fears of further inflationary shocks stemming from international instability. David Bharier, Head of Research at the British Chambers of Commerce, cautioned that escalating tensions between Israel and Iran could threaten oil shipments through the Strait of Hormuz—one of the world’s most critical maritime oil routes. Any disruption could significantly increase oil and shipping costs.
“Many small businesses simply don’t have the resilience to withstand such pressures,” Bharier noted.
As uncertainty continues to cloud the global economic landscape, chocolate—a simple indulgence—has become a stark symbol of the rising cost of living faced by households and businesses across the UK.
Source: theghanareport
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