Food costs outpace wages as inflation stays above target; Gloucestershire households cut back

Britain’s inflation rate remains above the Bank of England target, with overall CPI at 3.8% and food inflation at 5.1%, the highest since the start of the cost‑of‑living crisis, according to the Office for National Statistics. The figures underscore pressure on households as groceries and other essentials keep rising, including in Gloucestershire, where residents report tighter budgets and a habit of shopping around for bargains.

Valerie George, 78, of Abbeydale, says she can no longer afford the foods she used to buy and fears she may soon be living on a diet of vegetables as prices climb.

Lesley Davis, 67, from Cinderford, says rising prices mean she buys less cake and biscuits and uses the bargain aisle first. A lot of things are going up so we don’t bother to buy them any more. We used to buy cakes and biscuits but now we only get them for special occasions. We always go to the bargain aisle first.

Janek Davis, 39, and Odin Luneta, 21, both from Gloucestershire, say the cost‑of‑living crisis is on everybody’s mind. Davis describes it as puzzling to navigate higher prices in supermarkets, noting that most people from a working background are feeling the squeeze and that sacrifice has become common. Luneta says he must be more conscious about where he spends money.

The British Retail Consortium surveyed 2,000 people and found growing concern about the year ahead. The biggest worry for respondents was prices rising faster than wages, with 57% agreeing. The report highlights that younger and working households are bearing the brunt as planning and frugality become routine.

The BRC warned that food inflation could stay above 5% well into 2026 if the Autumn Budget increases taxes on retailers or if other policy changes raise costs further. That prospect adds to uncertainty for households and retailers aiming to preserve purchasing power.

Gloucestershire County Council is partnering with Feeding Gloucestershire to identify the causes of food inequality and mobilize action across communities, producers, suppliers, and policymakers. The council is also providing families eligible for free school meals with vouchers to help cover food costs during school holidays.

Analysts say the trend underscores the link between macroeconomic policy and local markets: inflation persistence shapes consumer behavior, which in turn influences local businesses and the effectiveness of social support programs. In Gloucestershire, the combination of rising grocery prices and targeted local measures illustrates how communities respond as prices and wages move in different directions.