The jump follows only a 0.1% month-on-month increase in May, with structural supply issues and unpredictable weather offsetting any relief to costs from recent drops in global energy markets, the report states.
The sector saw month-on-month increases across nearly all food and drink categories, with fish and seafood prices increasing by 2.7% month-on-month and yearly inflation for the category running at 6.4% - the highest in the Index.
This rise has driven by strict quota restrictions across North Atlantic whitefish fisheries and unyielding biological challenges constrained farmed salmon output, says Prestige Purchasing.
Meat and poultry prices rose by 2% as tight cattle availability and resilient global demand restricted supply, and prices of coffee, tea and cocoa rose by 1.8% as a result of adverse weather and structural plantation issues in Brazil, Vietnam and West Africa.
The rise in vegetable prices was lower, at just 1%, and fruit lower still, at just 0.5%.
“The 1.8% month-on-month spike in June is a stark reminder of how fragile the food supply chain remains. We are currently witnessing a significant disconnect in the market; global oil prices have fallen, yet UK operators are facing continued cost increases across both fresh and manufactured categories,” says Shaun Allen, CEO at Prestige Purchasing.
“This paradox clearly demonstrates that structural supply deficits, such as fish quotas and cattle shortages, combined with the immediate impacts of European heatwaves, are overpowering the benefits of cheaper energy.
“The protective buffer of forward contracts is being severely tested. Operators must look beyond headline energy prices and focus their procurement strategies on mitigating climate and structural risks, which will undoubtedly dictate market pricing as we move through the second half of the year.”
The inflationary increase in June comes despite improved global macroeconomic indicators, most notably a drop in crude oil prices, which fells from £84.95 a barrel in May, to £64 in June. However, anticipated relief in the costs of manufacturing, packaging and logistics has not yet materialised in the UK wholesale market, the report says.