Food Prices Were 40.3% Higher Than in November 2020

UK food and non-alcoholic drink prices rose 1.3% in the year to August 2026, the latest ONS release available on 15 October 2026. The CPI food index was 144.6, compared with 103.1 in November 2020: a 40.3% cumulative increase, calculated from those published indices.

Key Facts & Figures

  • Food CPI inflation reached 19.1% in March 2023, a historical peak in the recent surge.
  • Food prices were 40.3% higher in August 2026 than in November 2020, using ONS CPI indices.
  • Annual food and non-alcoholic drink CPI inflation was 1.3% in August 2026.
  • The annual food inflation rate was also 1.3% in July 2026.
  • Food prices rose 0.4% between July and August 2026.
  • Overall UK CPI inflation was 3.1% in August 2026; this is different from food inflation.
  • The food CPI index was 144.6 in August 2026, with 2015 equal to 100.
  • In 2024/25, household food and non-alcoholic drink represented 10.9% of average UK household expenditure.
  • For the lowest-income fifth, that expenditure share was 15.2%.
  • For the highest-income fifth, the share was 7.9%.
  • Restaurants and hotels CPI inflation was 4.1% in August 2026; this category is broader than restaurant food.
  • A lower inflation rate means slower price growth, not a return to earlier prices.

What Drove Food Inflation?

Food prices reflect costs and conditions across farming, processing, transport and retail. Defra identifies several interacting influences:

  • Energy: Fuel and electricity costs affect production, refrigeration and transport.
  • Agricultural inputs: Fertiliser and commodity prices can change the cost of producing food.
  • Supply disruption: Conflict, weather and transport problems can affect availability and costs.
  • Labour: Staffing costs affect several stages of the food chain.
  • Exchange rates and trade: Imported food and ingredients expose businesses to changes in international prices and sterling.

The Impact on Food Businesses

Businesses should assess their own purchasing and operating costs. National consumer-price averages do not measure every restaurant’s costs or margin:

  • Margins: Compare actual ingredient costs with selling prices and other expenses.
  • Menus: Review recipes and sourcing while keeping allergen information accurate.
  • Continuity: Plan alternatives for ingredients that become unavailable.
  • Prices: Communicate price changes clearly to customers.
  • Portions: Use consistent portions and describe products accurately.
  • Waste: Measure avoidable waste before changing purchasing quantities.

The Latest Position in October 2026

The latest published ONS month is August 2026. The annual food rate was lower than during the 2022–23 surge, but the cumulative increase remained substantial. These are observed prices, not forecasts:

  • Annual food CPI inflation: 1.3%.
  • Monthly food price change: +0.4%.
  • Food CPI index: 144.6, compared with 142.8 in August 2025.
  • Cumulative change since November 2020: +40.3%, calculated as (144.6 ÷ 103.1 − 1) × 100.
  • Individual products and household shopping baskets can experience different price changes.

Written by Food Safety Experts

This article was created by the team at Level 2 Food Hygiene, dedicated to promoting food safety and public health across the UK.

Sources & References

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Mark McShane
Mark McShane
Health & Safety Training Specialist, Online CPD Academy

Mark writes about food safety, food hygiene and accredited online training for Level 2 Food Hygiene Certificate, part of Online CPD Academy.