UK food inflation is expected to continue its downward trend into 2026, according to the chief executive of Sainsbury’s, offering cautious optimism to households still

grappling with high living costs.

Simon Roberts, CEO of Britain’s second-largest supermarket chain after Tesco, said easing price pressures across the food supply chain should support lower inflation over the year ahead. His comments came after Sainsbury’s released an update on its Christmas trading performance on Friday.

Recent industry figures underline that trend. Data published earlier this week showed UK grocery inflation stood at 4.3% in the four weeks to December 28, down from 4.7% in the previous four-week period.

“We’ve seen food inflation come down, and when you look at the outlook for the year ahead, we’d expect that to continue,” Roberts said.

He pointed to greater stability in commodity markets as a key factor behind the improving outlook. Roberts also noted that Sainsbury’s will not face the same rise in employer social security costs in 2026 that added pressure to the business in 2025.

While wage costs remain a challenge, Roberts said these increases were already factored into the company’s long-term planning.

“Wages are still increasing, but those are things we’ve planned for over a long period of time,” he added.

From April, the UK’s main minimum wage rate is set to rise by a further 4.1%, a move that will increase costs for retailers but also boost household incomes. Despite this, Sainsbury’s believes the broader inflationary environment for food is becoming more manageable, raising hopes of steadier prices for shoppers in the year ahead. Photo by Chris J Dixon, Wikimedia commons.