Wed, 20 Aug 2025

Wed, 20 Aug 2025 Why are food prices still rising by so much?

Food and drink prices have risen by 4.9% over the last year, according to ONS inflation data.

* Food and non-alcoholic drink prices rose 4.9% in the year to July, the highest annual rate since February 2024.
* Contributing factors include: + Climate: drought in UK and extreme weather elsewhere have affected crop yields and wholesale prices of goods like coffee beans and cocoa. + Global events: war in Ukraine has disrupted supply chains and pushed up prices.
* Farmers are affected first, with rising costs being passed down to consumers 6-18 months later.
* Business owners are struggling with increased minimum wage and employer National Insurance Contributions.
* Consumers are adapting by cutting back on discretionary spending, such as fast food and casual dining.
* Low-income families are hit hardest by rapid rises in food prices.
* Rising inflation is affecting households of all income levels, making it harder for people to stretch their money.
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