As grocery prices rise at their highest pace in 13 years, experts warn there are more hikes to come.
Image source, Getty ImagesThe average grocery bill in the UK is on course to rise by £380 this year, according to research company Kantar
Back in April, the firm predicted the cost of the average annual supermarket shop would go up by £280 in 2022.
The upward revision shows “just how sharp price increases have been recently and the impact inflation is having on the sector”, said Kantar.
The survey also showed grocery prices rose by 8.3% over the past four weeks, the highest rate in 13 years.
Official figures for April showed overall inflation – the increase in prices over time – was running at 9% a year in the UK – the highest rate for 40 years. The Bank of England has warned inflation might reach 11% within months, as the prices of fuel and food put pressure on household budgets.
The Office for National Statistics are due to publish the May inflation figures on Wednesday.
Overall supermarket sales are declining, down by 1.9% in the 12 weeks to the 12 June – the smallest fall since October 2021.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The sector hasn’t been in growth since April 2021 as it measures up against the record sales seen during the pandemic. However, these latest numbers show the market is to an extent returning to pre-COVID norms as we begin comparisons with post-lockdown times.”
The researchers also found shoppers are switching from branded items, sales of which are down by 1%, to supermarkets’ own-label products.
“Sales of these lines, which are often cheaper, have risen by 2.9%, boosted by Aldi and Lidl’s strong performances, both of whom have extensive own-label repertoires,” said Mr McKevitt.
“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 and together all value own-label lines grew by 12.0%.”
Lidl was the fastest growing supermarket over the 12 weeks with sales up by 9.5%: Morrisons saw the biggest fall with sales down by 7.2%.
