FOOD prices are set to soar once again with bread, eggs, cheese and butter all being hit hard after the Budget tax hikes.
Shoppers have been warned to watch their wallets in the second half of 2025 with costs expected to rise by over four per cent, trade experts have warned.
Shoppers have been warned of rising food prices with another tax hike[/caption]
Costs expected to rise by over four per cent, trade experts have warned[/caption]
Breakfast items have been most notably hit by the skyrocketing costs to produce food in the UK.
Alongside the staple breads, egg, cheese and butter, cereals and coffee are also set to continue to steadily rise in the coming months.
British Retail Consortium (BRC) CEO Helen Dickinson said inflation would likely “rise across the board as the year progresses”.
The reasons for this are “geopolitical tensions running high” and the “imminent £7bn increase in costs from the autumn budget”, Dickinson said.
She continued: “We expect food prices to be over four per cent up by the second half of the year.
“If the government wants to keep inflation at bay, enable retailers to focus on growth, and help households, it must mitigate the swathe of costs facing the industry.
“It can start by ensuring no shop ends up paying more than they already do under the new business rates proposals, and delaying the new packaging taxes.”
Mike Watkins, NIQ head of retailer and business insight, says food inflation is set to push shoppers towards using more loyalty scheme discounts.
He said: “With many household bills increasing over the next few weeks, shoppers will be looking carefully at their discretionary spend and this may help keep prices lower at non-food retailers.
“However, the increase in food inflation is likely to encourage even more shoppers to seek out the savings available from supermarket loyalty schemes.”
Breakfast has already faced rising prices in the past after it got drastically more expensive in January.
Food prices rose another 4.2 per cent with the return of punishing inflation after the Budget’s business tax hike.
The price of basic groceries also jumped by record levels as farmers, food manufacturers and retailers passed on the higher costs caused by pandemic supply chain disruptions and the energy crisis.
Supermarkets including Sainsbury’s, Morrisons and Marks & Spencer have all warned that shoppers will face higher prices because of higher taxes in the Budget.
Meanwhile, Wetherspoons has also said that food and drink prices will have to rise.
How to save money on your food shop
Consumer reporter Sam Walker reveals how you can save hundreds of pounds a year:
Odd boxes – plenty of retailers offer slightly misshapen fruit and veg or surplus food at a discounted price.
Lidl sells five kilos of fruit and veg for just £1.50 through its Waste Not scheme while Aldi shoppers can get Too Good to Go bags which contain £10 worth of all kinds of products for £3.30.
Sainsbury’s also sells £2 “Taste Me, Don’t Waste Me” fruit and veg boxes to help shoppers reduced food waste and save cash.
Food waste apps – food waste apps work by helping shops, cafes, restaurants and other businesses shift stock that is due to go out of date and passing it on to members of the public.
Some of the most notable ones include Too Good to Go and Olio.
Too Good to Go’s app is free to sign up to and is used by millions of people across the UK, letting users buy food at a discount.
Olio works similarly, except users can collect both food and other household items for free from neighbours and businesses.
Yellow sticker bargains – yellow sticker bargains, sometimes orange and red in certain supermarkets, are a great way of getting food on the cheap.
But what time to head out to get the best deals varies depending on the retailer. You can see the best times for each supermarket here.
Super cheap bargains – sign up to bargain hunter Facebook groups like Extreme Couponing and Bargains UK where shoppers regularly post hauls they’ve found on the cheap, including food finds.
“Downshift” – you will almost always save money going for a supermarket’s own-brand economy lines rather than premium brands.
The move to lower-tier ranges, also known as “downshifting” and hailed by consumer expert Martin Lewis, could save you hundreds of pounds a year on your food shop.
Breakfast is one of the biggest areas to be hit by the Budget[/caption]
Shoppers are being urged to watch their wallets[/caption]
