London Daily

Focus on the big picture.
Tuesday, Jul 14, 2026

Food inflation 'hit record high' ahead of Christmas led by fresh produce as spend £1bn higher than 2021

Food inflation 'hit record high' ahead of Christmas led by fresh produce as spend £1bn higher than 2021

The cost of food continues to mount, as £12.8bn spent, but a retail body says inflation across the sector as a whole is being held back by discounting in a bid to shift stock.
Food inflation hit a record annual rate in December as cash-strapped households prepared for Christmas, according to a retail sector report.

The latest British Retail Consortium-NielsenIQ shop price index showed typical food grocery costs up 13.3% last month compared with December 2021.

The rate had stood at 12.4% in November.

The data showed fresh food costs contributed most to the rise, through a 15% hike on an annual basis.

Even so-called ambient food - such as pasta and tinned goods - were up 11% by the same measure.

The BRC report noted that away from food there were some savings to be had for shoppers, as the overall shop price inflation rate eased slightly to 7.3% for the month.

This was mostly a consequence of some discounting among non-food retailers in the run-up to Christmas, according to the BRC.

A separate report demonstrated the extent to which inflation inflicted a brutal toll on supermarket shoppers during the festive season.

Kantar Worldpanel data showed a record amount spent over the four weeks to 25 December, despite a stampede towards value ranges.

The total spend of £12.8bn was £1.1bn higher than last December's sum.

Sales volumes - the amount of goods bought - actually fell by 1%.

BRC chief executive, Helen Dickinson, said the festive season had clearly been "challenging" for families given the scale of the cost of living crisis.

"Not only did the cold snap force people to spend more on their energy bills, but the prices of many essential foods also rose as reverberations from the war in Ukraine continued to keep high the cost of animal feed, fertiliser and energy," she said.

"Non-food price rises eased as some retailers used discounting to shed excess stock built up during the disruptions to supply chains, meaning some customers were able to bag bargain gifts.

"The combined impact was that price increases overall plateaued, with the reduction in non-food inflation offsetting the higher food prices."

The New Year is not set to deliver any major turnaround in economic fortunes, with demand held back by high inflation and rising interest rates to help tackle the pace of price rises.

It is hoped that the rate of consumer price inflation has peaked - for the foreseeable future at least - but it is expected to remain stubbornly high throughout the winter.

While supermarkets are thought to have benefited from more people eating at home, hospitality and retail store jobs are seen as being at risk in the months ahead as belts are tightened.

A string of well-known names - Greggs, B&M and Next - report trading updates on Thursday. Each is likely to be very cautious on the outlook for sales ahead.

Mike Watkins, head of retailer and business insight at NielsenIQ, said: "Consumer demand is likely to be weak in Q1 due to the impact of energy price increases and for many, Christmas spending bills starting to arrive.

"So the increase in food inflation is going to put further pressure on household budgets and it's unlikely that there will be any improvement in the consumer mind-set around personal finances in the near term.

"With shoppers having less money to spend on discretionary retail, having paid for their essential groceries, there will be little to stimulate demand across the non-food channels."
Newsletter

Related Articles

0:00
0:00
Close
Beer Industry Warns UK Rules Could Limit Growth of Alcohol-Free Market
Home Office Faces Legal Challenges Over Asylum Seeker Accommodation Closures
UK Heatwaves Linked to More Than Two Thousand Seven Hundred Deaths as Climate Debate Intensifies
Home Secretary Faces Pressure Over Political Security After Ann Widdecombe Murder Investigation
United Kingdom Opens Trade Consultation With Indonesia, Philippines, United Arab Emirates and Uruguay
Robert Jenrick Joins Reform UK After Leaving Conservative Party Leadership Role
Counter-Terrorism Police Take Over Investigation into Murder of Former MP Ann Widdecombe
Andy Burnham Secures Strong Labour Backing in Race to Succeed Keir Starmer
Global Markets Slide as Middle East Conflict Escalation Sends Oil Prices Higher
UK Prime Minister Keir Starmer Offers Condolences Following Death of Qatar’s Father Amir
UK Regional Innovation Policy Focuses on Research Clusters Across Scotland, Wales, and Northern England
UK Corporate Transparency Rules Set to Become More Strict Under Modern Slavery Reform Plans
UK Civil Service Estate Strategy Shifts Government Activity Away From London
UK Strengthens National Security Powers Through New Threat Designations
Greater Manchester Police Conduct Drink and Drug Driving Operations After Football Events
UK Government Advances Darlington Economic Campus With Construction Milestone
UK Authorities Increase Football-Related Security Operations After Tournament Fixtures
UK Invests Fifty-One Million Pounds in National Cryogenics Facility and Regional Innovation Hubs
UK Moves Toward Tougher Modern Slavery Reporting Rules With Corporate Penalties
UK Government Reports Forty-Three Million Pounds in Savings From Office Estate Reform
UK Government Expands Civil Service Regional Strategy With Manchester and Darlington Campus Projects
UK Designates Iran’s Islamic Revolutionary Guard Corps as National Security Threat
United Kingdom Financial Markets Monitor Business Response to Economic Policy Changes
Scottish Renewable Energy Expansion Highlights Need for Faster Grid Development
Wales and Regions Strengthen Focus on Economic Development Through Tourism and Investment
Retail Industry Warns High Street Businesses Remain Under Pressure
Police Chiefs Highlight Growing Challenges Managing Protests and Public Order
Agriculture Leaders Seek Clarity on Post-Brexit Farming Support and Environmental Rules
Transport Unions Warn of Further Industrial Action Over Pay and Working Conditions
Welsh Tourism Sector Reports Strong Growth Driven by Domestic and International Visitors
National Infrastructure Review Gains Support as Leaders Seek Faster Project Delivery
Financial Markets Assess Impact of United Kingdom Corporate Tax Policy Changes
Northern Ireland Assembly Debates Cross-Border Trade and Infrastructure Cooperation Plans
Government Opens Consultations on Housing Reform and Planning System Changes
Scottish Government Faces Pressure to Accelerate Offshore Wind and Grid Expansion
National Energy System Operator Warns Grid Investment Is Needed for Future Electricity Demand Growth
United Kingdom Research Council Invests in Artificial Intelligence and Biotechnology Innovation Hubs
United Kingdom Expands Oversight of Skilled Worker Visa Sponsors Amid Migration Debate
Cross-Party MPs Call for National Infrastructure Strategy Review to Accelerate Economic Growth
Prime Minister Announces One Billion Pound NHS Funding Package Ahead of Winter Pressures
Bank of England Signals Cautious Approach to Interest Rates as Inflation Remains Above Forecasts
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
×