Published by Global Banking & Finance Review®
Posted on January 9, 2026
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleSainsbury's CEO predicts a decline in UK food inflation by 2026, with stable commodity prices and planned wage increases.
LONDON, Jan 9 (Reuters) - Sainsbury's, Britain's second largest supermarket group after Tesco, expects food inflation to continue to fall in 2026, its boss said on Friday.
Industry data published on Tuesday showed UK grocery inflation was 4.3% in the four weeks to December 28, easing from the 4.7% level recorded in the previous four week period.
"We've seen food inflation come down and when you think about the outlook for the year ahead we'd expect that to continue," Sainsbury's CEO Simon Roberts told reporters after the group updated on Christmas trading.
He said commodity prices were likely to be more stable in 2026, while Sainsbury's wasn't facing the same hike in employer social security costs that it had in 2025.
"Whilst wages are still increasing, those are things that we planned for over a long period of time," Roberts added.
From April, Britain's main minimum wage rate jumps a further 4.1%.
(Reporting by James Davey; editing by Sarah Young)
Food inflation refers to the rate at which the prices of food items increase over time, affecting consumers' purchasing power and overall cost of living.
Commodity prices are the market prices for raw materials and primary goods, such as grains, metals, and energy resources, which can influence food prices.
Grocery inflation measures the rate of price increase for food and household items sold in grocery stores, impacting consumer spending and budgets.
Employer social security costs are mandatory contributions made by employers to social insurance programs, which can affect overall labor costs and wages.
Explore more articles in the Finance category
