FDF statement on August ONS inflation figures

Dr Liliana Danila, Chief Economist, The Food and Drink Federation (FDF), said:

"Inflation was steady in August because the entire food system, including manufacturers, is straining to find further efficiencies and keep costs as low as possible for shoppers. However, the cost pressures caused by war in Iran, droughts across the UK and Europe, and El Niño are still very real challenges for food and drink manufacturers. We expect these to filter through into prices in shops.

“Government can help tackle rising shopping bills. We’ve given the Chancellor suggestions on how he can help take the heat out of food inflation, including providing rapid and targeted energy support for food and drink manufacturers. Food and drink is an essential that households can’t go without. If the government is serious about tackling the cost-of-living, this sector needs to be a priority.”

Background:

• The Food and Drink Federation forecasts that food inflation will reach 3.9% by December 2026, and peak at 6.4% in July 2027: UK food inflation forecast 2026-2027: Later and longer | FDF | The Food & Drink Federation
• Food and non-alcoholic drink prices rose by 1.3% in the 12 months to August 2026, unchanged from July. On a monthly basis, food and non-alcoholic drink prices rose by 0.4% in August 2026.
• Prices rose the fastest for fish (11.8%), water (8.9%) preserved fruit (7.7%), and pasta (7.2%).
• Prices fell for 15 categories, with the largest drops for butter (-7.0%), fruit and vegetable juices (-4.1%), pizza (-3.9%), and jams & marmalades (-3.5%).