Food bill: Britain's favourite dishes and beverages price index

Cost of ham sandwich up 22.9% in one year, but some prices have fallen in the last 10 years.

Britons are spending more on food, with prices accelerating to 7% in July - the highest inflation rate since May 2009, and up from 5.6% in June, according to British Retail Consortium’s latest shop price index.

Crunching various data from the Office for National Statistics (ONS), interactive investor, the UK’s second-largest private investor platform, has tracked the cost of the key ingredients in some of the nation’s most-popular dishes since 1971 (since records of inflation data of most of these ingredients began).

• Find out about: Free regular investing | Interactive investor Offers | ii Super 60 Investments

Since 1971, the price of a ham sandwich, for example, has increased nearly 17 times, and the price of a cheese sandwich has increased by nearly 15 times. The price of a cup of coffee will also set you back 14 times more than in 1971.

Meanwhile, the British favourite - cottage pie - has increased at a much more modest level and has only doubled since records for this meal began in 1994. Similarly, bangers and mash have only increased 2.4 times since 1994.

Recent inflation is a mixed picture

When it comes to recent inflation, it’s a mixed picture. The humble ham sandwich has jumped most in price, up 22.9% since June 2021, followed by a cup of coffee (18.1%) and a chicken roast dinner (14.8%).

Inflation since the start of the pandemic in March 2020, however, reveals a more complex picture. A ham sandwich has increased 24.6% since March 2020, showing that most of the recent inflation is actually in the last year.

Likewise, inflation on a chicken roast dinner is 16.0% since March 2020 - only slightly higher than its annual inflation figure.

A slightly longer-term view shows that food inflation for most items has been at a very low level, or even deflationary for many years. A large cottage pie cost over £10 to make in 2013 compared with £8.23 now. Likewise, a homemade cheddar cheese sandwich cost around 55p in 2011 compared with 49p now.

Breaking down the ingredients

Individual ingredients give a more detailed picture of what's been happening. For example, the cost of meat and fish has risen at a faster rate than potatoes, meaning, it is comparatively more expensive to buy meat and fish, and cheaper to buy potatoes than it was 40-odd years ago.

Commenting, Alice Guy, Personal Finance Expert, interactive investor, says: “Food inflation has been crazy over the last year, but it’s important to set this in context so that we don’t panic consumers. Although the yearly figures look high, taken over 10 years, food inflation is actually a lot more reasonable. For example, inflation for a cup of coffee is 18.1% this year but has only averaged 2% over the last 10 years and the cost of a chicken roast dinner, a cottage pie and a cheese sandwich has actually reduced over the last 10 years.

“By looking at a range of meals, we can also see that inflation isn’t the same across the board. All the meals in our research have increased in the last year, but the cost of some meats such as chicken and ham has pushed up the cost of certain meals much higher than others.

“We would like to have included some more vegan meals using pulses, pasta and rice in our research, but they are not currently tracked in the same way by the ONS. Switching to cheaper alternatives such as pulses and minced meat can be a good way to make your food budget stretch further.”

Myron Jobson, Senior Personal Finance Analyst, interactive investor, adds: “Consumers have a lot of flexibility when it comes to weathering rising food prices, in contrast to household energy bills and fuelling your car, where the choice is more binary – you can cut down on energy use and drive less, but you don't have any real product choices. The results of our study shows that consumers can save on costs by switching their choices.

“For example, the cost of adding a Yorkshire pudding to a chicken roast would add an extra 11p to the cost of your meal - but it could save over all as you might need less chicken, and be able to save some for a sandwich the next day. And for some, removing a Yorkshire pudding from the dish would be sacrilege. When assessing ways to reduce food bills, it is important that assess shopping habits and a palatable tweak.

“Escalating food prices are changing the way we eat and grocery shop. More and more Britons are ditching premium brands and are switching to cheaper store brand alternatives, and some are making do with less. Those living on the breadline are forced to take more aggressive steps to save: we have seen worrying reports of people forgoing meals because of the bumper cost of food.

“Food is a big expense, especially for those on the lower end of the income spectrum. The Institute for Fiscal Studies estimates that the lowest-income 10th of households allocate 23% of their spending to food, compared with 10% for the highest-income 10th.

“Businesses aren’t just raising sticker prices, but they are also reducing the size of goods. Consumers also face paying more for less, which is difficult to swallow with the cost of seemingly everything else on the up.”

Tips to save on food bills

Myron Jobson outlines three tip to cut grocery bills:

Shop around and consider bulk buying

Shop around for the best deals – especially for high-ticket items. Even simple things such as opting to purchase a store brand equivalent of traditional larder products can help to cut down the cost of groceries. Consider buying items in bulk so you are not constantly spending as prices continue to climb.

Make use of loyalty reward cards

Making use of supermarket loyalty cards and schemes - such as Tesco Clubcard and Nectar - can go a long way in offsetting price increases. Most loyalty initiatives offer worthwhile savings, ranging from exclusive discounts for members to freebies by earning points. Make sure you note the expiry date on loyalty rewards, if applicable, so that you can use them before you lose them.”

Plan meals and portions carefully

Creating a shopping list and sticking to it is an obvious way to save money. It is worth planning your meals for the week ahead so you know exactly what you’d need to buy and have an idea of how much the ingredients will set you back. Also consider how many mouths need to be fed, and portion control. This could also help reduce the amount of food you throw away.”