UK food inflation to continue to fall in 2026, says Sainsbury's boss | Global Banking & Finance Review | GBAF

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Home > Finance > UK food inflation to continue to fall in 2026, says Sainsbury's boss

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UK food inflation to continue to fall in 2026, says Sainsbury's boss

Published by Global Banking and Finance Review

Posted on January 9, 2026

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Sainsbury's CEO Predicts Continued Decline in UK Food Inflation by 2026

Sainsbury's Insights on Food Inflation

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.

Current Grocery Inflation Rates

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.

Factors Influencing Food Prices

"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.

Wage and Cost Considerations

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)

Frequently Asked Questions about UK food inflation to continue to fall in 2026, says Sainsbury's boss

1What is food inflation?

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.

2What are commodity prices?

Commodity prices are the market prices for raw materials and primary goods, such as grains, metals, and energy resources, which can influence food prices.

3What is grocery inflation?

Grocery inflation measures the rate of price increase for food and household items sold in grocery stores, impacting consumer spending and budgets.

4What are employer social security costs?

Employer social security costs are mandatory contributions made by employers to social insurance programs, which can affect overall labor costs and wages.