The news comes as the Food and Drink Federation (FDF) announced last week that it was anticipating food inflation would reach 9% by the end of the year, owing to the wide-ranging impacts of the Iran war. Original forecasts had instead expected this figure to be around 3% at year end.
The research, compiled by personal finance experts from comparison website Confused.com, found that the average British household now spends nearly £119 a week on food shops – equating to more than £6,000 a year.
Alarmingly, the significant inflation suffered by the food sector is reflected in a 23% annual increase in the average weekly food bill – far outstripping the wider cumulative inflation rate for the rest of the economy, which rose by between six and eight per cent since the start of 2024.
Larger families hit hardest
While the average UK household currently spends £119 per week, weekly food bills are significantly higher for larger families. Families with one child pay an average of £138 a week, while families with two children pay £161. The cost rises to around £170 for those with three or more children.
A one-child household is now paying an average of £26 more per week compared with two years ago. This increases to a £28 weekly rise for a two-child household, and around £30 extra per week for families with three children or more.
Shoppers forced to cut back
As a result, more than three in five people (61%) say they have had to cut back on buying certain items, such as snacks or treats (30%), fresh meat or meat alternatives (21%), or alcohol (19%).
The need for sacrifice has also crept into Brits’ wider financial commitments, affecting 72% of respondents. Meanwhile, 42% of UK adults say the increase in the cost of food has affected their ability to save, while a further 41 % say it has impacted their personal spending.
In what may be worrying news for the wider economy, increased spending on grocery bills has led to 28% of UK families cutting back on days out, with 22% limiting the amount they spend on holidays. A further 16% say that clearing their debt is negatively affecting their wellbeing.
Priciest categories
According to Confused.com’s research, meat is the most costly item on people’s shopping lists, at £16 per week on average, followed by alcohol (£14) and frozen items (£12). Meanwhile, fish, fresh vegetables, dry foods, dairy items or alternatives, and household essentials each cost around £11 per week.
At the other end of the scale, bread was found to be the cheapest item, at £8 per week on average, followed by other bakery items, with a weekly cost of £9.
How shoppers are saving
Rising prices have led people to identify smarter ways to save. More than half (55%) now use loyalty rewards or vouchers, while 46% prioritise cheaper own-brand items.
A further 41% say they look at the price per unit on items to find the best value for money. Over a third (38%) buy yellow-sticker items where possible, while a third (33%) prefer to shop at budget supermarkets over larger grocers.
“Food shops are a weekly necessity that has become increasingly costly for Brits. Buying fresh items like meat, fish, fruit and vegetables in particular amounts to a significant amount of money spent each week – but these are things we shouldn’t have to go without,” said Confused.com personal finance expert, Nicola Morgan.
“It’s important we look for ways to save money so we can keep enjoying the foods we love. There are a number of ways to save money when it comes to the weekly food shop.”
Morgan advised customers to focus on signing up for store loyalty or rewards schemes as an easy win to save money on the weekly shop, as well as carefully checking the unit price to evaluate value for money.
She also encouraged customers to shop online more frequently, as this can reduce impulse buys and help shoppers stick more closely to a list. It also allows shoppers to sort items by price and deals for a “quicker way to see where savings can be made”.
She added: “Small changes to the way you shop can go a long way to helping you save money at the tills, without having to sacrifice spending elsewhere.”
With already one in five households placing online grocery orders, a further move to ecommerce could see some brands that rely on impulse purchases suffering.
This could become an even bigger problem with the roll-out of AI. As the Institute of Grocery Distribution recently warned: with shopping for groceries generally a habitual and repetitive task, it makes it an ideal candidate for this kind of automation with retailers and suppliers products at risk of becoming “invisible” if the algorithm doesn’t work in their favour.
