Growing food costs lead to 5.1% rise in UK shop price inflation

Largest rise in records dating back to 2005

Valeria Martinez
clock • 2 min read

Shops and supermarkets in Britain increased prices by 5.1% in the 12 months to August, reaching a new high as the war in Ukraine continues to push up food prices.

Food prices rose by 9.3% after a 7% increase in July, the British Retail Consortium said today (31 August). Fresh food inflation surged to its highest level since 2008, and products such as milk, margarine and crisps saw the biggest rises. This rise in shop price inflation is the largest since records began in 2005. Mike Watkins, head of retailer and business insight, NielsenIQ, who co-produces the data, said that we can expect this level of food inflation to be with us for at least another six months.  UK retail sales dip in June as households grapple with inflation "Hopefully som...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Early Powell departure could be an 'unexpected gift' for EMs

Early Powell departure could be an 'unexpected gift' for EMs

Trump claims he will replace chair sooner

Eve Maddock-Jones
clock 01 July 2025 • 3 min read
BoE's Andrew Bailey: Pick-up in inflation makes outlook uncertain

BoE's Andrew Bailey: Pick-up in inflation makes outlook uncertain

UK inflation at 3.4%

clock 27 June 2025 • 2 min read
Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely

Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely

Policies' economic impacts ‘uncertain’

Eve Maddock-Jones
clock 25 June 2025 • 3 min read
Trustpilot