Wed, 17 Sep 2025

Wed, 17 Sep 2025 Food prices continue to surge as inflation remains at 3.8%

While UK inflation held steady in August, the pace of price rises for food surged, increasing cost of living pressures.

* Food price inflation rose by 5.1% in August, the fastest pace since January last year.
* Beef, butter, milk, and chocolate prices continued to surge, with beef and veal prices up nearly 25%.
* Despite food costs rising, overall UK inflation remained at 3.8%, unchanged from July.
* Economists blame supermarkets for passing on increased National Insurance Contributions (NIC) and minimum wage costs to consumers.
* Chancellor Rachel Reeves acknowledged that families are struggling with high bills and promised to bring costs down.
* Shadow chancellor Sir Mel Stride criticized Labour's tax policies, saying they were "stoking inflation".
* The UK's inflation rate is significantly higher than France and Germany, which have lower inflation rates of 0.8% and 2.1%, respectively.
* Food costs are outpacing average wage growth, with many families struggling to pay for basic necessities.
* Some food items, such as cereals and pasta, fell in price last month, but overall, prices remain high.
* The Bank of England is widely expected to hold interest rates on Thursday, and economists doubt it will cut rates in November.
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