As temperatures continue to rise, so do our grocery bills.
What's happening?
As reported by Food Ingredients, the Food and Drink Federation's latest Food Inflation Forecast 2025–26 report states that food prices in the UK are projected to keep climbing through 2026.
Between January 2020 and July 2025, the cost of food and non-alcoholic beverages has surged 37%, which outpaces general inflation by nearly 10%.
"It's concerning seeing food and drink inflation rise further, to 5.1% in August, when commodity and energy prices are fairly stable," said FDF chief executive Karen Betts.
Why are recent grocery bills concerning?
Beyond rising costs, the human impact on the environment is compounding food inflation and deepening inequality.
Extreme weather events worsened by Earth's overheating are damaging harvests across Europe. The FDF notes that wheat production in the UK alone is projected to be about 9% below the 10-year average for a second consecutive year, with farmers struggling to maintain yields under increasingly unpredictable conditions.
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Wheat isn't the only crop impacted. Droughts threaten global coffee supplies, and extreme heat is impacting dairy production.
When these necessities falter, the effects ripple far beyond farms.
"When prices rise, families are forced to allocate a larger share of their income to food, leaving less for other essentials such as housing, healthcare, education, and savings," the report warns. The poorest households already spend nearly 13% of their income on food compared with 8.7% for the wealthiest.
What's being done about food costs?
Industry leaders are calling for urgent action from the government to relieve financial pressure on both food manufacturers and consumers. The FDF argues that the government must reduce unnecessary regulatory costs and reinvest packaging and recycling fees to boost sustainability outcomes rather than burden producers, and thus shoppers, with higher bills.
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Should plastic grocery bags be banned nationwide? Click your choice to see results and speak your mind. |
Absolutely 👍 On an individual level, consumers can make small changes that add up. By shopping smarter, like planning meals, reducing food waste, and seeking local or seasonal produce, you can help lower your grocery bill.
These solutions will hopefully keep food affordable while protecting the planet that puts it on our plates.
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