If your weekly food shop has started feeling pricier again, you’re not imagining it. UK food inflation has just hit its highest level in a year and a half, and some of our everyday staples are behind the rise - think eggs, butter, and even chocolate.
Why Are Food Prices Rising Again?
Food inflation now at 4.2%: Prices in August were 4.2% higher than a year ago, up from 4.0% in July. That might sound small, but it’s the biggest jump since early 2024.
Fresh food is leading the charge: Fruit, veg, and dairy shot up by 4.1%, compared with 3.2% in July.
Cupboard essentials are a bit calmer: “Ambient” foods (the longer-life stuff like tins and packets) actually cooled slightly, from 5.1% to 4.2%.
The main culprits: eggs and butter, which are noticeably pricier due to supply issues and rising costs. Chocolate is climbing too, driven by poor cocoa harvests abroad.
What’s Putting Pressure on Shops?
It’s not just food production costs - retailers are facing billions in extra expenses from things like higher wages and national insurance hikes.
Shops say they’ve absorbed what they can, but some of these costs are trickling down to us. In fact, more than 60 major retailers (Tesco, Sainsbury’s, Boots, and others) have warned the government that more taxes in the next budget could send food inflation up to 6% by the end of the year.
Other Factors at Play
Mike Watkins from research firm NIQ explained a few reasons why things are more expensive right now:
1. Global supply chain costs are still high.
2. Weather is pushing up seasonal food prices.
3. Big promotions (linked to recent sporting events) have ended.
4. Shops are paying more to keep the lights on and staff paid.
The Bank of England has also pointed out that this April’s national insurance increase is still working its way into prices.
What This Means for Us Shoppers
For households, it’s another squeeze on budgets. Essentials are climbing just as energy bills are expected to rise too. Overall inflation in the wider economy is sitting at 3.8%, well above the Bank of England’s 2% target and it’s been stuck there for months.
That makes it less likely that interest rates will be cut soon - something the Bank will be watching closely.
Vertex View
Groceries are getting more expensive again, especially the everyday basics. Unless government policy eases the pressure or global costs come down, we could see prices climb further into winter. For now, shoppers may need to be extra savvy: swapping brands, making use of loyalty schemes and keeping an eye out for deals could make a real difference at the checkout.
