Shopper Squeeze: Food Prices Rise Again Despite Inflation Cooling

Shoppers in the UK are still paying more for their weekly shop as food prices continue to increase for many staple grocery basket items, including vegetables, according to the latest ONS figures.

While the rate of inflation in the UK fell to 3.6% in the 12 months to October – its lowest level since March, the Office for National Statistics (ONS) said food and non-alcoholic drink inflation jumped to 4.9% during the same period, following the dip seen in September.

Consumers are feeing the pinch across a number of grocery lines. The price of vegetables increased, including potatoes, while fruit prices dipped slightly. Bread, cereals, meat, fish, sugar, jam, chocolate, and confectionary prices also rose. 

Image: ONS

The persistent rise in food prices is prompting shifts in shopping habits, according to The Bank of England (BoE), as concerns about rising food costs and utility bills still dominate conversations. 

“Households continue to change their shopping habits to reduce spending, such as buying more vegetables and reducing meat consumption,” BoE revealed in its November update.

Food price inflation is expected to to subside in 2026 to around 3%, the Bank of England said, provided there are no further shocks to input costs.

Nonetheless, as Christmas approaches, the stubborn increase in food costs is “very concerning”, commented Karen Betts, chief executive of The Food and Drink Federation (FDF). 

“Food and drink manufacturers are paying nearly 40% more for ingredients and energy than they were in January 2020, as well as bearing a range of newer regulatory costs, like new packaging taxes and increases to employer national insurance,” Betts said. “Hard-pressed food and drink companies are finding they simply have no choice but to increase prices.”

Ahead of next week’s Budget, Betts said food manufacturers are “nervous", with nine in ten worried about the impact of additional costs and taxes on food prices.

“We want instead to see the Government step up and support our sector by protecting businesses from unwelcome tax surprises and partnering with us to drive growth and build resilience to help prevent future price rises for shoppers,” she added.

The British Retail Consortium (BRC) echoed the comments, describing the Budget as a “crucial opportunity" to alleviate some of the price pressures bearing down on the industry. 

“Fulfilling the manifesto pledge to reduce the business rates burden on the high street will allow retailers to invest more to keep prices in check, benefiting households across the country,” explained Dr Kris Hamer, BRC’s Director of Insight.

With the cost of the weekly shop continuing to be a concern for consumers, Chancellor Rachel Reeves has said she is determined to do more to bring down prices and tackle the cost of living.