What’s next for food prices and the cost of your grocery shop in 2025
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Food prices are set to rise by nearly 5% next year as experts warn that food manufacturers and supermarkets will pass on higher costs from the Budget to shoppers. The past three years have been dominated by the cost of living crisis with the price of eggs, milk, butter chocolate and olive oil soaring.
![[The price of a supermarket shop has soared by record levels]](https://www.thesun.co.uk/wp-content/uploads/2023/07/ct9c7x-self-service-supermarket-shelf-835331662.jpg?strip=all&w=960)
The price of basic groceries 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. Food inflation peaked at 19.2% in March 2023 but has slowed dramatically to 1.9%, compared with 10.1% in October 2023. This means the rate of price increases has fallen rather than that food is getting cheaper.
Some grocery items are cheaper than a year before including pasta, rice, flour, chicken, frozen fish, cheese and yoghurts. However, most items are still increasing in price - just by smaller amounts than before. The Bank of England has forecast that it expects food prices to only rise by 1.1% throughout 2025.
However, many retailers and economists believe this is overly optimistic and highlight the Bank previously got its inflation forecasts badly wrong. Supermarkets including Sainsbury’s, Morrisons and Marks & Spencer have all warned that shoppers will face higher prices because of higher taxes in the Budget.
