London Daily

Focus on the big picture.
Monday, Jan 05, 2026

Cost of living: Products hit hardest by soaring prices revealed as grocery inflation at highest level in 13 years

Cost of living: Products hit hardest by soaring prices revealed as grocery inflation at highest level in 13 years

Kantar Worldpanel, which provides data across the grocery sector, says its measure of grocery inflation jumped by more than 1% over its last reporting period to 7% - with signs the peak is far from being reached.

Grocery inflation has hit its highest level in 13 years - with almost a quarter of shoppers struggling to make ends meet, according to closely-watched industry data.

Kantar Worldpanel said its measure of inflation in supermarkets had risen to 7% from 5.9% just a month ago.

Prices were rising fastest in markets such as dog food, savoury snacks and fresh beef, the research revealed.

It reflected the surging costs from things such as energy, fertiliser, fuel and animal feeds being passed down the supply chain in the wake of Russia's war in Ukraine.

Prices had already been rising in advance of the war in February as worker shortages coupled with high demand to force up shipping costs, hampering the recovery from the COVID-19 pandemic.

It would also seem that the food inflation problem has far from peaked.

The boss of Arla Foods - the UK's largest dairy firm - told Sky News just last week that production costs were continuing to rocket at levels never seen before, placing further pressure on prices for the foreseeable future.

A string of other companies in the grocery space have warned that their prices will have to go up further - most recently Mr Kipling's owner, Premier Foods.

Kantar's latest report, covering the grocery market over the 12 weeks to 15 May, showed that supermarket sales were down by 4.4% on the same period last year.

It stated that the weaker comparison likely reflected coronavirus restrictions in place at that time and growing consumer caution.

The spring months during 2022 have been dominated by an unprecedented leap in the cost of household energy, as the price cap was raised by an average £693 a year on 1 April.

Record energy and fuel prices have since been reflected in more everyday items, with the Office for National Statistics (ONS) confirming last week that the main consumer prices index measure of inflation had hit a 40-year high of 9% last month.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: "People are really feeling the squeeze at the supermarket tills and they're having to stretch their budgets further to accommodate rising prices.

"To put the most recent numbers into context, if you were picking up supplies for a family fry-up over the long weekend with toast, eggs, sausages, bacon, and beans it would cost you £6.83 - that's a significant 40p increase on last year."

He added: "In our recent Kantar Pressure Groups survey, 43% of households described themselves as 'managing' while 22% said they were 'struggling'.

"Within the growing group of shoppers struggling to make ends meet, the rising price of groceries is of concern to over nine in 10 people, making it the second most important issue behind the spiralling cost of energy bills."

The government is under mounting pressure to relax the purse strings and provide aid to homes and businesses.

Boris Johnson said on Monday that they would "just have to wait a little bit longer" for news of the latest support package.

He has not ruled out a one-off tax on the profits of energy companies to help subsidise the bills being faced by consumers.

Labour has accused the government of dithering and says its windfall tax plans would see each household in need get £600 off their energy bill.

Newsletter

Related Articles

0:00
0:00
Close
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
×