The average UK household is set to spend an extra £380 ($467) on grocery shopping this year, as food prices increase at their fastest rate in 13 years.
According to new data from Kantar Worldpanel, grocery price inflation surged to 8.3% in the last four weeks, up from 7% a month earlier, and the highest level since April 2009.
It represented a rise of more than £100 on the extra sum families were paying in April, adding further pressure to the sharp cost of living crisis, amid surging energy bills, and record fuel prices.
“This is over £100 more than the number we reported in April this year, showing just how sharp price increases have been recently and the impact inflation is having on the sector,” Fraser McKevitt, head of retail and consumer insight at Kantar, said.
Although sales were up 0.4% in the last four weeks, the research showed that they fell overall by 1.9% in the 12 weeks to 12 June, with Brits turning to own-label products (a jump by 12%) rather than branded items (2.9%).
Sales of own-label lines were also “boosted by Aldi and Lidl’s strong performances, both of whom have extensive own-label repertoires”.
McKevitt added: “We can also see consumers turning to value ranges, such as Asda Smart Price, Co-op Honest Value and Sainsbury’s Imperfectly Tasty, to save money.”
Prices were rising fastest in dog food, butter and milk, while the price of spirits was falling.
Tesco (TSCO.L), Aldi, and Lidl were the only supermarket chains to see their market share increase on a sales value basis over the period.
Kantar also revealed that an extra £87m was spent during the Platinum Jubilee celebration, with an increase in alcohol and ice cream. Alcohol sales were up by a third and purchases of ice cream increased by 35% over the week compared to the average in 2022.
“Many people tried their hand at the official Jubilee pudding, the lemon Swiss roll and amaretti trifle, and sales grew by 16% for lemon curd, 58% for fresh cream, 18% for Swiss rolls and 9% for custard,” McKevitt said.
The rise of food prices, and other supermarket goods, are expected to be reflected in the inflation figures for May, which are due to be released by the Office for National Statistics (ONS) on Wednesday.
Economists polled by Reuters expect a slight hike in the annual rate from 9% to 9.1%, a fresh 40-year high.
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