Food and drink prices have risen by an annual rate of 5.1 per cent in the fastest increase since January 2024, new ONS figures show

Shopping trolley

Shoppers are facing higher food prices

Food prices have risen for the fifth month in a row and at an annual rate of 5.1 per cent, according to new figures from the Office for National Statistics (ONS).

The 12-month inflation rate is also the highest recorded rate since January 2024, with particular upward trends in vegetables, milk, cheese, eggs and fish.

Overall inflation, tracked by the ONS’ Consumer Prices Index (CPI), was 3.8 per cent in the 12 months to August 2025, unchanged from July. A downward trend in airfare prices led to the overall rate not moving, despite higher prices in restaurants, hospitality and food. 

In a monthly column for the print issue of FPJ, out next week, consumer insight director at Worldpanel by Numerator, Laura Fry, said grocery bill pressure is still influencing spending.

“However, people continue to seek affordable indulgences within grocery stores, balancing cutbacks elsewhere with small treats at home,” she wrote.

“Interestingly, the premium tier of fresh produce is showing strong momentum. Over the 12 weeks to 10 August 2025, premium ranges recorded volume growth of 5.8 per cent year on year, while standard-tier produce managed only marginal growth at 0.3 per cent.”

For the full consumer insight and retail column from Worldpanel by Numerator, see the next edition of FPJ, in print and on the FPJ app at the end of September.