Rising cost of grocery staples driving UK food inflation

A "significant" jump in the cost of grocery staples such as eggs and butter is stoking food inflation, according to data pointing to a renewed cost of living squeeze.

- Lauren Almeida

The British Retail Consortium (BRC) said prices had risen at their fastest pace for 18 months, with food inflation hitting 4.2% this month. This was up from 4% in July and the highest reading since February 2024, according to its monthly shop price monitor.

The BRC chief executive, Helen Dickinson, said the rapid rise had added to the pressure on people already struggling with the cost of living. "Staples such as butter and eggs saw significant increases due to high demand, tightening supply and increased labour costs," she said.

"Chocolate also got more expensive as global prices of cocoa remain high owing to poor harvests."

The BRC also said its data showed that overall shop price inflation increased to 0.9% in August, even as non-food products fell by 0.8%.