UK grocery price inflation has reaches record 16.7%
UK grocery price inflation has reached a record 16.7%, adding a potential £788 to annual shopping bills, according to new figures.
The 2.3 percentage point increase in the four weeks to January 22 exceeds the previous high recorded in October and is the highest since records began in 2008.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Late last year, we saw the rate of grocery price inflation dip slightly, but that small sign of relief for consumers has been short-lived.
Households will now face an extra £788 on their annual shopping bills if they don’t change their behaviour to cut costs.”
To counter the price hikes, grocers are focusing on everyday low pricing, with many supermarkets offering price matching and using loyalty schemes to help shoppers save.
This has resulted in the proportion of spending on promotions dropping to its lowest level since 2008, exaggerating the usual post-Christmas drop-off in deals.
Aldi was the fastest-growing grocer for the fourth month in a row, with sales up 26.9% year on year and now holding 9.2% of the market. Lidl’s sales jumped 24.1% giving it a 7.1% market share.
Among the three largest grocers, Sainsbury’s sales increased by 6.1%, giving it 15.4% of the market. Tesco remains the largest UK retailer with a 27.5% market share, while Asda holds 14.2%.
Sue Davies, Which? Head of Food Policy, said:
“These latest figures are deeply concerning, and reflect Which?’s own inflation tracker, which shows the dramatic impact the cost of living crisis is having on everyday products at the supermarket.”
“Some households are already skipping meals to make ends meet and our research shows trust in supermarkets taking a hit as many people worry they are putting profits before the people suffering during this cost of living crisis.”
“Supermarkets must do more, and Which? is calling for them to ensure everyone has easy access to basic, affordable food ranges at a store near them, particularly in areas where people are most in need, as well as clear unit pricing which enables people to easily work out the best value items. Supermarkets should also target promotions to support people who are particularly struggling.”
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