UK households could see their annual grocery bills increase by £275, as food and drink prices continue to rise. Faced with growing costs, many shoppers are turning to budget-friendly
alternatives, including supermarket own-brand products and simpler home-cooked meals.
According to market research firm Worldpanel by Numerator, food prices in the past month have jumped 5.2% compared to the same period last year. Concern over the rising cost of shopping is pushing consumers to make noticeable changes to their buying habits.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, noted that prices are "back up on the rollercoaster" seen after the 2022 invasion of Ukraine, which triggered spikes in energy and commodity costs. Although inflation eased in 2023, the recent four-week period marked the steepest rise in food prices since early last year.
Currently, the average household spends about £5,283 annually on groceries. If spending habits remain unchanged, that could rise by £275 this year.
Some of the steepest price increases were seen in chocolate, butter, spreads, and fresh meat. In contrast, items like dog food, confectionery, and laundry products saw prices fall.
McKevitt said most shoppers still have ways to manage costs, such as opting for store-brand products, looking for deals, or switching to lower-cost retailers. However, about 20% of UK households are now struggling with grocery expenses and may have little room left to cut back.
Worldpanel’s research, based on the habits of 30,000 UK households, also shows a shift toward simpler meals, with nearly 70% of dinners now made up of fewer than six ingredients.
Rising food prices are contributing to broader inflation in the UK, which reached 3.6% in the year to June—the highest level since January 2024.
