Tesco meal deal price rises

Why are food prices still rising

The price of a main, snack and drink has gone up from £3.60 to £3.85 for Clubcard holders from Thursday. Customers who do not have a loyalty card will see the price rise from £4 to £4.25.

The sandwich, snack and drink deal had cost £3 for 10 years before prices were hiked in October 2022 when food prices were rising at their fastest rate in 42 years.

The different prices for those with and without a Clubcard also reflect how the UK's biggest supermarkets are using loyalty cards to compete for customers as rising food prices squeeze margins.

Loyalty cards are a way for retailers to collect data on what customers are buying and offer them more at lower prices. Some 80% of Tesco shoppers are believed to use its Clubcard scheme.

The average person has loyalty cards for three supermarkets, data from research firm Kantar suggests.

Tesco said its meal deal "remains great value".

It is understood some of the most expensive items in the standard meal deal would cost more than £8 if purchased separately.

The supermarket also offers a premium meal deal which has gone up from £5 to £5.50 for those with a Clubcard and £6 for those without.

The rising cost of food has been persistent, with the latest inflation figures showing food and non-alcoholic drink prices rose 4.9% in the year to July.

But a look at the trend over in five years to July, food prices increased

Tesco is among dozens of retailers who have written to Chancellor Rachel Reeves to warn that any new taxes on businesses she could announce in the Autumn Budget would push up prices further for customers.

The letter sent

It said changes the government has already made to employer National Insurance, higher employment costs and the introduction of a new packaging tax had added £7bn in new costs to retail businesses.

The Bank of England has said these cost increases may have added 1% to 2% to food prices. It expects food price inflation to peak at around 5.5% at the end of the year, before falling to between 2% and 3% in 2026.