London Daily

Focus on the big picture.
Thursday, Oct 09, 2025

UK inflation: Milk, cheese and eggs push food price rises to 14-year high

UK inflation: Milk, cheese and eggs push food price rises to 14-year high

The soaring price of milk, cheese and eggs has pushed food inflation to its highest level for 14 years.

Food prices rose at their fastest pace since 2008 in the year to August as the war in Ukraine continued to help drive up prices at supermarket tills.

Falling petrol and diesel prices meant the overall inflation rate eased slightly but it remains near a 40-year high, official figures show.

Rising costs are eating into budgets, with prices rising further than wages.

Overall UK inflation, which measures the rate at which prices rise, eased for the first time in almost a year in August, slipping to 9.9% from July's 10.1%.

The figure was not as high as economists had feared but some have warned the inflation rate is likely to continue to rise, noting that the cost of food, clothing and services - which include things such as shops and restaurant prices - were all continuing to rise sharply.

The Bank of England has warned inflation could top 13% this year, and is expected to keep raising interest rates to try to control it.


However, the government plan to try and prevent widespread hardship by limiting rises in household energy bills, is likely to mean inflation will now not rise as high as previously expected.

"High inflation continues to drive Britain's cost-of-living crisis, but the outlook has brightening considerably over the past week," said Jack Leslie, senior economist at the Resolution Foundation.

"The Energy Price Guarantee should prevent a second winter surge in prices."

"However, high inflation is set to be with us for some time, particularly for low-income who continue to be hit hardest by high prices."

Food prices have been going up around the world following Russia's invasion of Ukraine, which has been one of the factors pushing up prices at supermarket tills.

The war has disrupted supplies from the two countries, which are major exporters of goods such as sunflower oil, wheat, and fertiliser.

Inflation is the pace at which prices are rising. For example, if a bottle of milk costs £1 and that rises by 5p compared with a year earlier, then milk inflation is 5%.

Central banks around the world, including the Bank of England, have been trying to get soaring inflation under control by hiking interest rates.

Raising rates is a way of controlling inflation, as it increases the cost of borrowing and encourages people to borrow and spend less. It also encourages people to save more.

The Bank had been widely expected to increase rates again on Thursday, but it postponed that decision following the death of Queen Elizabeth II.

The Monetary Policy Committee's decision will now be announced on 22 September.

Kitty Ussher, chief economist at the Institute of Directors said she still expected interest rates to go up when the Bank of England announced its latest decision.

"The fact that the falling headline rate is due to changes in the price of petrol and diesel, which is driven predominantly by the international price of oil rather than by domestic factors, means news is unlikely to alter expectations of a rise in interest rates," she said, noting the Bank would act to try to stem UK price rises, such as food and services.


House prices


According to separate figures published by the ONS, house prices recorded their biggest annual increase in 19 years in the year to the end of July.

The 15.5% rise compared with a 7.8% annual increase the previous month.

The jump was mainly due to the effects of the stamp duty holiday last year.

The stamp duty holiday in England and Northern Ireland was reduced from July last year, before being phased out in October 2021.

A similar property tax holiday in Wales ended at the end of June last year and the equivalent holiday in Scotland ended at the end of March. All were a response to concerns about the economic effect of Covid lockdowns.

As a result, the jump recorded for this July was mainly because of the contrast with the falls in prices seen this time last year.

The average UK house price was £292,000 in July, the ONS said.

Newsletter

Related Articles

0:00
0:00
Close
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
US Prosecutors Gained Legal Approval to Hack Telegram Servers
Macron Faces Intensifying Pressure to Resign or Trigger New Elections Amid France’s Political Turmoil
Standard Chartered Names Roberto Hoornweg as Sole Head of Corporate & Investment Banking
UK Asylum Housing Firm Faces Backlash Over £187 Million Profits and Poor Living Conditions
UK Police Crack Major Gang in Smuggling of up to 40,000 Stolen Phones to China
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Trump Proposes Farm Bailout from Tariff Revenues Amid Backlash from Other Industries
FIFA Accuses Malaysia of Forging Citizenship Documents, Suspends Seven Footballers
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
A Dollar Coin Featuring Trump’s Portrait Expected to Be Issued Next Year
Australia Orders X to Block Murder Videos, Citing Online Safety and Public Exposure
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
OpenAI and AMD Forge Landmark AI-Chip Alliance with Equity Option
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
×