UK inflation rose in July, with grocery inflation rising for the fourth consecutive month, according to the latest figures from the Office for National Statistics (ONS).

The Consumer Price Index went up by 3.8% in the 12 months to July 2025, an increase from 3.6% in the month prior. Food and non-alcoholic beverage inflation reached 4.9% in July, up from 4.5% in June.

The grocery categories that contributed to inflation were; meat, sugar, syrups, chocolate and confectionery, coffee, tea and cocoa, mineral waters, soft drinks and juices.

Kris Hamer, Director of Insight at the British Retail Consortium, said: “Households are once again seeing the cost of their weekly shop climb, with food inflation now up by 1.9% in just four months.

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“The Bank of England has been clear that government policies, which have driven up the costs of employment, are fuelling price rises at the till, while poor harvests and global instability have also added further cost pressures.

“Retailers have been doing everything they can to prevent price rises, but the swathe of costs they now face has left them no room to manoeuvre.”

Supermarket retailers have been warning of further inflation if higher business rates are imposed in the upcoming autumn budget.

Hamer added: “The Chancellor must avoid burdening the industry with even more taxes this autumn. Instead, she has an opportunity to encourage much-needed investment in our high streets by ensuring the planned reforms to business rates offer a significant reduction for retail properties and leave no shop paying more.”