Tesco has increased the price of its popular meal deal by 25p, marking the third rise since 2022. The deal now costs £3.85 for Clubcard holders, while customers without a loyalty card will pay £4.25. The UK's biggest grocer attributed the hike to soaring food prices, with official inflation figures showing a 4.9% year-on-year rise in food and non-alcoholic beverages in July.
The increase has drawn criticism from shoppers, with one user on X describing the news as 'truly devastating'. Another questioned whether the offer could still be considered a 'deal'. The meal deal had remained at £3 for a decade before the first increase in October 2022, during the height of the cost-of-living crisis.
Tesco is not alone in raising meal deal prices. In June, Sainsbury's increased its standard offering from £3.75 to £3.95, the second rise in under a year. The moves come as heatwaves and droughts in Spain, Italy, and Portugal have pushed up the cost of fresh produce, with beef, orange juice, coffee, and chocolate among the worst-hit items.
Despite the increase, Tesco's meal deal still offers significant savings. For example, a combination of a brie and smoked bacon sandwich (£3.25), vegetable samosa (£1.75), and a Naked smoothie (£2.90) would cost £7.90 individually but £3.85 with a Clubcard, saving £4.05. Without the card, the same items cost £4.25, saving £3.65.
The price rise coincides with a letter sent by over 60 retail chief executives to Chancellor Rachel Reeves, warning that further taxes in the autumn budget could lead to higher prices. The retailers, including Tesco, Sainsbury's, John Lewis, and Boots, argued that food price inflation could hit 6% this year and that they would pass on additional costs to shoppers. They cited increased employer national insurance contributions and the national minimum wage rise as factors.
