Spilling the beans on food inflation: what’s driving price changes?

How much do you spend on food every month? Food is one expense we simply can’t go without – we all need to eat, after all! But you may have noticed that your morning eggs, lunchtime sandwich, or favourite late-night snack is costing more than it used to. How have food prices changed over the past year? What’s driving the price increases? And what’s in store for our grocery bills in 2026? Our host Stefania Secola speaks to economists Elisabeth Wieland and Zivile Zekaite to answer these questions. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Recorded on 20 January 2026 and published on 26 January 2026. In this episode: 02:23 Is food really getting more expensive? How do we track changes in food prices? How did food inflation develop in 2025? And what role does media coverage play? 05:39 Which foods are especially affected? Some prices are up, others are down. Why have items like coffee, cocoa and meat been hit the hardest? 08:26 Have some products also become cheaper? While meat and sweet treats have become more expensive, items like vegetables and butter have become cheaper. The overall food basket tells an interesting story and is influenced by its different components. 09:13 What’s driving price increases for certain products? Raw material costs, climate change, and supply and demand factors all affect food prices. Rising wages and energy costs also play a role. 12:35 Why do food prices matter so much? Food is a big part of our budget and cannot be replaced by other items. Also, since we go to the supermarket often, food prices play a big role in shaping our inflation expectations. 19:10 What can we do about rising food prices? Temporary vs structural changes – how do they differ? And what’s the ECB’s role when it comes to inflation and food prices? 20:52 What’s in store for our grocery bills in 2026? Good news: food inflation is set to ease in the coming year. So, what does this mean for your wallet? 22:06 Our guests’ hot tips Elisabeth and Zivile share their hot tips. Further reading: Inside the food basket: what is behind recent food inflation? (Economic Bulletin Issue 8, 2025) https://www.ecb.europa.eu/press/economic-bulletin/focus/2026/html/ecb.ebbox202508_07~8e10bb606b.en.html Consumer Expectations Survey https://www.ecb.europa.eu/stats/ecb_surveys/consumer_exp_survey/html/index.en.html Elisabeth’s hot tip: use food price comparison websites and apps for tracking prices Zivile’s hot tip: look at the price per kilogram to find the best-value food ECB Instagram https://www.instagram.com/europeancentralbank/