Finance
UK grocery inflation edges lower in August, Worldpanel says
Published by Global Banking & Finance Review®
Posted on August 19, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 19, 2025
2 min readLast updated: January 22, 2026
UK grocery inflation decreased to 5.0% in August, offering slight relief. Prices are rising fastest in chocolate and fresh meat, with predictions of further increases.
LONDON (Reuters) -British grocery inflation nudged down to stand at 5.0% over the four weeks to August 10, data from market researcher Worldpanel by Numerator showed on Tuesday, providing a little relief for consumers.
The figure, the most up-to-date snapshot of UK food inflation, compared to 5.2% in last month's report.
"We've seen a marginal drop in grocery price inflation this month, but we're still well past the point at which price rises really start to bite and consumers are continuing to adapt their behaviour to make ends meet," Fraser McKevitt, head of retail and consumer insight at Worldpanel, said.
The researcher said prices were rising fastest in markets such as chocolate, fresh meat and coffee and falling fastest in champagne and sparkling wine, dog food and sugar confectionery.
Britain's food retailers have said that higher employer taxes and regulatory costs as well as increased staff wages are adding to inflationary pressure from higher prices for commodities.
Trade body the British Retail Consortium, which represents Britain's biggest retailers, predicts that food inflation will hit 6% by the end of the year, putting more pressure on household budgets in the run up to Christmas.
The Bank of England has forecast it will hit 5.5% before Christmas and then fall back as global wholesale factors fade.
Official UK inflation data for July will be published on Wednesday.
(Reporting by James Davey; Editing by Kate Holton)
UK grocery inflation has decreased to 5.0% over the four weeks to August 10, down from 5.2% in the previous month.
Prices are rising fastest in categories such as chocolate, fresh meat, and coffee.
Higher employer taxes, regulatory costs, and increased staff wages are adding to inflationary pressures alongside rising commodity prices.
The British Retail Consortium predicts that food inflation will reach 6% by the end of the year, impacting household budgets.
The Bank of England forecasts that food inflation will hit 5.5% before Christmas and then decrease as global wholesale factors diminish.
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