
Back in 2012, a Greggs sausage roll was priced at a modest 66p. Fast forward to 2025 and shoppers now face a cost of £1.30 for the same popular snack, an increase that almost doubles its original price. This sharp rise spotlights the broader pressures of food inflation affecting high street retailers and consumers alike across the UK.
When George Osborne introduced the controversial “pasty tax” in 2012, which proposed to impose VAT on hot takeaway food, the 66p sausage roll became an unlikely emblem of middle Britain’s spending restraint. The public backlash forced a swift government U-turn, but the years since have not shielded shoppers from mounting costs at the till. Prices for fast food and takeaway items have risen 33% since 2020, notably outpacing general inflation, which currently stands at 3.8%—almost twice the Bank of England’s target.
Rising operating costs, including a £25bn increase in employer national insurance contributions, have forced companies to pass on price hikes to customers. Executive Richard Lim of Retail Economics observes that patience is wearing thin, suggesting the market is discovering the limits of what British consumers are willing to accept for everyday treats. Sales figures reflect these strains; Greggs’ share price has halved over the year as spending growth slows and shoppers adapt to a new normal in disposable income and priorities.
Meanwhile, rivals like Pret a Manger are contending with similar headwinds. Their efforts to capture value-conscious lunch buyers—such as launching meal deals to compete with supermarkets—follow social media backlash over “premium” items, like the much-discussed £7.15 cheese and pickle baguette and salads topping £12. Pressure from competition and consumer reluctance prompted Pret to cut some prices, though its £5.50 baguettes and £3.95 flat whites remain far from bargain territory.
Food inflation has fallen hardest on the nation’s poorest households. Official UK data shows the bottom fifth by income cut food spending by five percent last year in real terms, at the very moment overall inflation was peaking and wages weren’t rising fast enough to compensate. Despite initiatives such as free breakfast clubs and expanded free school meals, many lower-income families continue to feel squeezed as inflation’s bite lingers.
The Bank of England’s efforts to curb inflation are beginning to take hold, but the price level for many essentials remains elevated. With consumer confidence softening and spending priorities shifting, many food retailers are at a crossroads, caught between passing on mounting costs and risking a sharp drop in sales volume. As the British public continues to watch the price of their favourite sausage roll, it’s clear that food inflation is testing both household budgets and the future of the high street food-on-the-go sector.
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