The uncomfortable truth behind your weekly shop
You don’t need to read the headlines to understand what’s happening – you just need to check your latest grocery receipt.
Milk, eggs, cheddar, chocolate… all up again.
In June 2025, UK CPI inflation rose to 3.6%, driven partly by higher food and drink prices.
According to the Office for National Statistics, food and non-alcoholic drink inflation reached 4.5% – the highest rate in over a year.
This is inflation as it’s lived, not theorised. And for many across the UK, it’s become a moment to pause and ask: Is my money still working for me?
The good news? More people are now rethinking how they save, spend, and plan – and that’s a smart move.
Why food prices are surging – again
Let’s look at what’s behind the rise.
- In June, Kantar reported grocery inflation at 4.7%, with the sharpest jumps in chocolate, butter and red meat:
- The British Retail Consortium noted the first rise in shop prices in nearly a year, citing wholesale meat prices, wage costs and weather effects.
- The Economics Observatory linked the upward trend to a mix of global supply strain, cocoa shortages, wage shifts and climate volatility.
These aren’t one-off fluctuations, they’re signs of longer-term adjustment. But being aware of them now helps you stay ahead, not behind.
Why this matters for savers and retirees
When food prices rise faster than interest rates, traditional savings accounts struggle to hold their value.
At 4.5% food inflation vs. ~2–3% returns on many cash products, there’s a real gap – and it adds up over time. But recognising that gap is half the battle. The other half is taking action.
If you’re over 55 or planning ahead for retirement, this awareness gives you the opportunity to make informed, strategic moves, not reactive ones.
What traditional savings can (and can’t) do in 2025
There’s nothing wrong with bank savings accounts. They’re secure, regulated, and easy to access.
But in today’s climate, many offer interest rates below inflation – meaning your money might be losing value in real terms, even as it appears to grow.
- Inflation is at 3.6%
- Food inflation is at 4.5%
- Most savings accounts offer rates under these levels
Still, the fact that you’re saving at all puts you ahead. Now it’s about making sure those savings keep their strength over time.
Physical gold: historically proven, now digitally usable
Gold has always been about one thing: holding value.
But what used to require brokers, bullion, and storage is now far more accessible.
TallyMoney lets you hold real, physical gold in your name, but spend or save it with the ease of a modern account.
How it works:
- 1 tally = 1mg of physical gold
- Your gold is fully insured and stored securely
- You can spend it via a TallyMoney Debit Mastercard
- Or transfer back to GBP, instantly and easily
This isn’t speculation. It’s not crypto. It’s real ownership – simple, transparent, and flexible.
Three months in a row: the trend is clear
July 2025 marks the third straight month of food price inflation growth. The Energy and Climate Intelligence Unit (ECIU) links this to a combination of climate factors and international harvest disruption:
When food prices rise steadily over months, not just weeks, it signals broader price pressure across energy, logistics, and supply chains.
But again, awareness = advantage. The earlier you adapt, the more control you have.
Many over-55s are acting sooner, not later
Telegraph data confirms that UK savers aged 55+ hold more than £2.3 trillion in pension wealth.
And many are now:
- Withdrawing their 25% tax-free lump sum earlier
- Moving funds into options that hold value over time
- Prioritising flexibility, access, and long-term strength
This isn’t panic – it’s preparation. It’s about turning awareness into action while time and control are still on your side.
Is gold too volatile? Not really.
Yes, gold moves in price. All assets do.
However, over the long term, gold has consistently protected purchasing power, especially during periods of currency weakening or inflation.
Over the past decade, it’s averaged annual returns above 11%.
That said, services like TallyMoney don’t treat gold as a get-rich-quick asset. We use it as a spendable unit of account, a way to store value in a form you control.
Flexibility matters – and Tally has it built in
- You can move pounds into gold instantly (with low fixed fees)
- Your gold is yours – fully insured and independently stored
- You can spend it, or withdraw it at any time
No lock-ins. No conversion fees on spending. No complexity.
It’s a way to preserve value while keeping access, even as prices continue to shift.
Food inflation is a warning – but also a prompt
Rising prices aren’t just a problem – they’re a prompt to reassess, realign, and act.
The Bank of England remains cautious on rate cuts, and inflation remains sticky.
For savers, that means the burden of protection rests with you. However, the good news is that you do have options.
You can move your money into something proven, transparent and stable – without giving up control.
A simple way to stay ahead
You don’t have to predict the markets. You don’t need to overhaul your finances overnight.
But you can decide to stop letting inflation quietly shrink your savings.
With gold-based savings via TallyMoney, you’re choosing a quieter kind of confidence. No noise. No speculation. Just a practical way to make sure your savings still mean something.
