UK food costs rise for fifth month in a row

The Consumer Price Index (CPI) rose by 3.8% in the 12 months to August 2025, unchanged from July 2025, data published by the Office for National Statistics shows.

On a monthly basis, CPI rose by 0.3% in August 2025, the same rate as in August 2024.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 4.1% in the 12 months to August 2025, down from 4.2% in the 12 months to July.

Air fares made the largest downward contribution to the monthly change in both CPIH and CPI annual rates; restaurants and hotels, and motor fuels made large, partially offsetting, upward contributions.

“After last month’s increase, annual inflation was unchanged in August as various price movements offset each other,” said ONS Chief Economist Grant Fitzner.

“The cost of airfares was the main downward driver this month, with prices rising less than a year ago, following the large increase in July linked to the timing of the summer holidays. This was offset by a rise in prices at the pump and the cost of hotel accommodation falling less than this time last year,” he said.

Food prices rise

Notably, food prices continue to rise across the UK.

The 12-month inflation rate for food and non-alcoholic beverages was 5.1% in August 2025, up from 4.9% in July.

This was the fifth consecutive increase in the annual rate and the highest recorded since January 2024, but it remains well below the peak seen in early 2023.

On a monthly basis, food and non-alcoholic beverages prices rose by 0.4% in August 2025, compared with a rise of 0.2% a year ago.

There were small upward effects to the change in the rate from 3 of the 11 food and non-alcoholic beverages classes, namely vegetables, milk, cheese, and eggs (particularly cheese), and fish.

These were partially offset by small downward effects from bread and cereals, and oils and fats.