‘Cheapflation’: poorer households’ food bills rose most at peak of cost-of-living crisis

Low-income households across the UK were hit hardest by rising food prices during the highest inflation period, research has revealed.   

The Institute for Fiscal Studies (IFS) found the least well-off paid 29.1% more for their food between 2021 and 2023, compared with 23.5% more for better-off households.

The cheapest options of household staples like like milk, pasta and butter rose by 36% in the two years to September 2023, whereas the more expensive options only went up by 16%.

These ‘cheapflation’ figures reveal “unprecedented” disparity across income classes, the report says. It calculates that if the poorest 25% had faced the same inflation rate for groceries as the richest 25%, they would’ve saved £100 on their yearly food bill.

We haven’t seen such differences in price rises between two income groups over a two-year period for a long time.

The annual inflation rate fell back to the government’s 2% target in May and June after peaking at 11.1% in October 2022.

But it rose again to 2.2% last month (July), the Office for National Statistics has revealed. Prices actually fell by 0.2% in July, but since that’s less than the 0.4% drop this time last year, the overall inflation rate still went up.

Are you struggling to cover your grocery bill?

Even though they’re rising less, food prices are still off the charts.

One way to take control of your money is to put together a budget – our free budgeting tool can help you make a realistic budget you can stick to. You can also check whether you’re getting all the help you’re entitled to with our free benefits calculator.

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