What’s driving food inflation and how you can save on your food bill
Food inflation within the UK has increased again, rising 4.9% year-on-year in July 2025, marking the highest rate since February 2024. Over the past five years, food prices have climbed by an average of 37%, with some staples seeing even sharper increases. [1]
Many households are being stretched already by rising energy prices and other costs which are increasing pressure on household budgets.
What’s causing the rise?
- Global raw material price increases. For example, chocolate has experienced the most dramatic price increases of any major food category. Prices are up by 16% in the past year alone, with cumulative inflation reaching 43% since 2022. [2]
- Increases in National Insurance contributions and the minimum wage rise have impacted what food retailers are charging for food to cover their costs.
- Increased production and transportation costs.
- Currency fluctuations.
How to save money on your food shopping
Whilst inflation is out of your control, there are some practical steps you can take to reduce your food shopping bill.
- Plan your meals for the week and shop with a list to help avoid impulse buys.
- Buy in bulk if there’s a particularly good deal on a product you’ll use. Check dates as some offers have short shelf lives.
- Use supermarket own brand products – they can often be significantly cheaper.
- Make the most out of loyalty schemes for supermarkets and cashback apps to earn rewards on your weekly shop.
- Try BudgetSmart, our free tool to help find savings and improve your financial confidence.
Reduce food waste to save having to rebuy
- Store your food shopping correctly to extend shelf life.
- Make the most of leftovers – you can create soups, casseroles and stirfries which can be great ways to use up left over bits of food.
- Organise your cupboards by use by date order to avoid wastage.
If you’re struggling with the rising cost of your food shopping you’re not alone
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[1] UK inflation rises by more than expected to 3.8%, largely driven by air fares – BBC News
[2] Why are food prices rising in the UK? – Economics Observatory