#food-inflation

#food-inflation

More than half of British diners say rising prices are the main reason they are eating out less, according to YouGov data showing that overall 38% of people are visiting restaurants and other eateries less often than a year ago. Among those cutting back, 63% cite higher costs as the main reason to dine out less frequently, according to the poll.

Headline CPI inflation held at 3.8% in September, a pace unchanged since July, in line with Cebr's forecasts. Overall, the picture for UK households is mixed. Food inflation slowed for the first time since March, from 5.1% to 4.5%, but prices for electricity, gas, and other fuels continued to rise, accelerating to 9.4% in September. Divergent price pressures place the Bank of England at a crossroads.

Following last year's Budget, where retailers were hit with £5 billion in extra employment costs due to higher employer National Insurance and rising National Living Wages, the industry has been left with little room to absorb additional costs. With EPR set to cost industry billions, this new tax will be yet another inflationary pressure, at a time when food prices are already rising fast, with The Bank of England estimating that the policy alone will add 0.5% to food inflation.

"It was crazy but pretty cool," said co-owner Jim Angelopoulos. "It's nice to see a long line around the block."

According to the British Retail Consortium (BRC)-NIQ Shop Price Monitor, food prices have soared to their highest pace in 18-months as the price of eggs, butter and chocolate surges, this is the highest seen since February 2024. The rapid acceleration in price hikes will "add pressure" to households who are already struggling to make ends meet. In the month food inflation jumped to 4.1% as dairy prices are rising which is up from 3.2% in July.