Table of contents

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 household favourites seeing even sharper increases. [1]

Rising energy prices and other costs are already straining many households, increasing pressure on household budgets.

What’s causing the rise in food prices?

  • 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 rise in the minimum wage have impacted what food retailers charge to cover their costs.
  • Increased production and transportation costs.
  • Currency fluctuations.

How do I save money on my food shop?

Whilst inflation is out of your control, there are some practical steps you can take to reduce your food shopping bill.

  • Plan your weekly meals and shop with a list to help avoid impulse buys.
  • Buy in bulk if you can find an excellent deal on a product you’ll use. Check the dates, as some offers have short shelf lives.
  • Use supermarket own-brand products – they can often be significantly cheaper.
  • Take advantage of supermarket loyalty schemes and cashback apps to earn rewards for your weekly shop.
  • Try BudgetSmart, our free tool to help find savings and improve your financial confidence.

How can I reduce food waste?

  • Store your food shopping correctly to extend shelf life.
  • Make the most of leftovers. Soups, casseroles and stir-fries are great ways to use up leftover food.
  • Organise your cupboards by use-by date to avoid wastage.

I’m struggling to budget: How PayPlan can help

Food inflation is a challenge that affects us all, but with the right tools, you can protect your budget and stretch your money further.

Don’t hesitate to contact us if you need help managing your budget or advice on debt management.

Get debt help online or call us on 0800 316 1833 for a confidential conversation today.

[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