Inflation holds steady at 3.8% but high food prices push 6.6 million Brits to rely on credit cards for essentials

High Food Prices Push 6.6M Brits to Credit Cards

With grocery costs still rising faster than wages, millions are turning to credit to make ends meet, as 6.6 million Brits are reported to resort to credit cards for basic necessities 1.

Inflation remained unchanged at 3.8% in September, defying expectations of a rise, but the relief many hoped for hasn’t reached supermarket aisles.

While the rate of price growth has slowed, food costs are still climbing, up 4.5% in the year to September. Despite easing from the near-20% peak seen after the pandemic, food inflation continues to outpace the levels recorded before that spike 2.

Us at Updraft, experts in helping people manage their consumer credit, finds that online searches for “cheapest supermarket” in the UK have surged by 110% in the past quarter, and shares three practical ways to save on food shops.

Millions using credit cards for everyday bills

Data shows 6.6 million Brits are now relying on credit cards to pay for essentials such as groceries and utilities, which is a stark reminder that even a flat inflation rate still feels like a financial uphill battle.

Aseem Munshi, Our founder at Updraft, comments:

“The latest figures might sound stable, but they don’t feel stable for most families. Prices are still rising, just more slowly, and many people are turning to credit to get through the month.

“When essentials like food and energy go on credit, it’s a sign that household budgets are stretched to their limits.”

Why steady inflation doesn’t mean cheaper living

Although food inflation has dropped significantly from its pandemic-era peak of nearly 20%, the average food shop remains far higher than pre-crisis levels. A modest 0.2% monthly fall in food prices in September is welcome, but unlikely to make a visible difference at the till.

Munshi warns that it’s easy to mistake falling inflation for falling prices:

“Inflation stabilising doesn’t mean things are getting cheaper, it just means they’re getting more expensive at a slower rate. That’s little comfort when you’re already paying record prices.

“When you’re dealing with tight margins, every little bit really does add up, as a few pounds here and there on groceries, takeaways or impulse buys can easily snowball into bigger costs over time.”

Three ways to take control of food costs

Even as inflation steadies, many households are still feeling the pinch at the checkout. But there are practical ways to make your money go further. Munshi shares three simple steps that can help ease the strain and bring spending back under control:

1. Set a clear food budget and stick to it

“Having a weekly or monthly grocery budget helps you see exactly where your money is going and where it’s slipping away. Tracking expenses through budgeting tools or banking apps can make it easier to stay accountable.

“When every pound counts, clarity is key. Knowing your limit before you shop helps you make intentional choices rather than impulse ones.”

2. Meal prep to cut waste and avoid overspending

“Planning meals in advance doesn’t just save time, it saves money, as you can walk into a supermarket each week knowing you’ll be spending the same amount each time.

“Meal prepping is one of the simplest ways to cut costs and reduce waste. It helps you buy only what you need, make the most of multi-buy offers, and avoid those midweek top-up shops that tend to push budgets over the edge.”

3. Shop smart, from yellow-label bargains to own-brand swaps
“Shopping strategically can lead to significant savings over time.

“Switching to budget retailers or supermarket own-label products can save families hundreds of pounds a year. And if you can, make the most of yellow-label deals. Those end-of-day markdowns can cut your food bill by up to 70%. It’s about small, consistent changes that add up over time.”

As Munshi concludes: “With millions leaning on credit cards and food prices still outpacing pay, the cost-of-living squeeze continues to affect us all.

“Flat inflation shouldn’t fool anyone into thinking the pressure is easing. For many families, every saving still counts, from yellow labels to smarter spending habits.”