Food prices set to rise throughout 2025

The Institute of Grocery Distribution (IGD) has warned that food prices could rise by more than double the Bank of England’s 2% inflation target next year.

In a recent report, the organisation predicted that food prices would increase by an average of 2.4% to 4.9% in 2025.

This increase means food prices have jumped by more than 40% since 2020.

The IGD said that the weekly grocery shop is now unlikely to ever return to levels seen before the pandemic and warned that households must get used to paying more for food.

But unlike past years when prices were pushed up by the cost of commodities, The IGD is blaming 2025’s price hikes on the government's October budget.  

Measures, such as national insurance and increases to the national living wage, have resulted in higher, unexpected costs for supermarkets.

The IGD estimates that the supermarkets will absorb between 20% and 40% of these extra costs, with the rest being passed on to shoppers through higher food prices.

It warns food prices will remain a problem for households well into 2026.

James Walton, chief economist at the IGD, said: “We do not see food prices going down in the foreseeable future….Consumers will undoubtedly look for ways to save money, but the impact of these cost pressures will be felt across the economy.”

With food set to remain costly for the foreseeable future, we’ve pulled together five quick tips to help you save on your weekly shop.

Meal planning

Planning your meals for the week ahead helps you identify exactly what ingredients you need and stops you picking up things you haven’t budgeted for.

Bulk buying

Stocking up on non-perishable items like pasta, rice, and canned goods when they're on sale can save you money. Buying in bulk is typically cheaper because you’re not paying for fancy packaging and marketing. You just pay for the product inside.  

Choose cheaper cuts

Go for less expensive cuts of meat such as brisket, shoulder, ribs, cheek or belly and cook them creatively to release their flavour. Find recipe ideas at Good Food or Tesco Real Food.

Check for yellow stickers

Supermarkets regularly reduce the price of food nearing its sell-by date. Picking up reduced ‘yellow sticker’ items can save up to 70%. Just remember to stick anything close to going off straight into the freezer to extend its usability.

Avoid impulse buys

Shopping when you're hungry can lead to unplanned purchases, so make sure you eat before heading to the supermarket to avoid temptation.