Inflation May Have Eased but Prices Remain High in the UK
Headline inflation in the UK has fallen slightly from 3.8% to 3.6%, but overall price growth remains persistent, reflecting a world of higher prices. The peak headline inflation rate was 11.1% in 2022, with food price inflation reaching a high of 19.2% in October 2022.
Food price inflation reached 4.9% in October 2025 and has continued to rise since April, when National Insurance contributions (NICs) increases came into force. Food prices are now 4.9% higher than a year ago and 36.8% higher than four years ago, as supermarkets have passed increased costs on to shoppers.
The rise in food inflation is outpacing wage growth, fueling wage-price dynamics that contribute to ongoing economic pressures. Despite the slight easing in headline inflation, households remain squeezed due to sustained high prices.
The Bank of England is currently considering whether to cut interest rates next month amid this stubborn food inflation trend. The UK inflation crisis has roots in the post-lockdown period and has been exacerbated by the war in Ukraine, maintaining a high-price environment for consumers.
