UK Inflation at 3.8%: Why Food Prices Are Still Rising & What It Means for You (2026)

Low income households continue to face inflation painpublished at 09:14 BST

09:14 BST

UK Inflation at 3.8%: Why Food Prices Are Still Rising & What It Means for You (1)Dharshini David
Deputy economics editor

Nosurprises here for analysts but this morning's figures underscore the frustration many households feel.

Wages for many have risen at a faster pace thaninflation - but even for those people, they are frustrated that their money isstretching a bit less furtherthan hoped.

It’s particularly painful for those on lower incomes, as the resurgence of inflation hasbeen rooted in staple products.

There’s anxiety too for homeowners or landlords, who hopethat interest rate cuts later this year may be looming.

Butmuch of the recent rise in inflation has been spurred by global commodity prices - energy and food - and many of those pressures are subsiding.

One factor that has led to food inflation outstripping rates in Europeis government policy.

The Bank of England are among economistswho’ve suggested that measures such as higher National InsuranceContributions and minimum wages may have added more than 1% to food prices, while adding to cost pressures elsewhere.

Thosetoo should pass - but could there be more? The boss of Aldi has warned that more price rises may loom, depending on Budget measures.

The governmentsays the Budget will help to ease the cost of living pressureson consumers and businesses - we will have to wait to see exactly what that means.

We're ending our live coverage of today's inflation news but you can read our full report here.

UK Inflation at 3.8%: Why Food Prices Are Still Rising & What It Means for You (2026)
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