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Food bills on course to rise by £275 a year as prices jump

July 22, 2025
in Business
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Tom Espiner

BBC business reporter

Getty Images Woman looks at packet of biscuits in supermarketGetty Images

The average household spend on food and drink is on course to rise by £275 this year, prompting shoppers to buy cheaper groceries or prepare simpler meals at home to cut costs.

Over the past month, food prices have risen by 5.2% compared to last year as consumers’ concern about the cost of shopping has accelerated, according to Worldpanel by Numerator.

The market researcher said shoppers are changing their habits to buying supermarkets’ own-brand goods, which sometimes cost less, or are scaling back on what they serve at dinner.

Fraser McKevitt, Worldpanel’s head of retail and consumer insight, warned prices are “back up on the rollercoaster” seen after Russia invaded Ukraine in 2022.

At that time, the cost of energy and commodities soared which led to a steep rise in food prices before they eased in 2023.

The increase in prices over the last four weeks is the highest since the beginning of last year.

On average, UK households spend around £5,283 for a year on groceries but this could increase by £275 unless people change what they buy, said Worldpanel by Numerator.

Chocolate, butter and spreads as well as fresh meat recorded the sharpest rises in the four weeks to 17 July, according to the company, which monitors prices on 75,000 identical products.

At the same time, the cost of dog food, confectionery and laundry dropped.

Mr McKevitt said most people have options when it comes to managing food costs such as buying more own-brands goods from supermarkets, looking for promotions or going to cheaper shops.

Getty Images Golden Cocker Spaniel puppy dips head in food bowlGetty Images

Dog food is one area where prices are falling

But Worldpanel said that around a fifth of households in the UK are “struggling” with grocery bills, with some of those in a situation where they can not cut food costs any more.

The research firm, which follows the shopping habits of 30,000 households across the UK, said people are making simpler evening meals when trying to save money.

“Almost seven in 10 dinner plates include fewer than six components,” said Worldpanel.

The growing cost of food has contributed to an increase in the overall rate of inflation in the UK which hit 3.6% in the year to June – the highest since January 2024.



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Tags: billsfoodjumppricesriseyear

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