Shoppers were put on warning today that the cost of living crisis is far from over as latest figures showed food prices rocketing at a record annual rate of 17.1 per cent.
The data from market researchers Kantar covers the four weeks to 19 February and suggest that shoppers are having to pay £811 more a year for the same trolley of groceries.
Staples such as eggs, milk and maragarineare among the fastest risers.
It comes as many supermarkets struggle to secure supplies of fresh vegetables such as tomatoes and lettuces as a result of bad weather in Spain and northern Africa compounded by delays to the start of the British growing season.
The shortages are feeding through to rising prices in wholesale produce markets leading to even higher supermarket bills.
Fraser McKevitt, head of retail and consumer insight at Kantar, comments: “Shoppers have been facing sustained price rises for some time now and this February marks a full year since monthly grocery inflation climbed above 4%. This is having a big impact on people’s lives.
“Our latest research shows that grocery price inflation is the second most important financial issue for the public behind energy costs, with two-thirds of people concerned by food and drink prices, above public sector strikes and climate change. One quarter say they’re struggling financially, versus one in five this time last year.* The numbers speak for themselves. If people don’t change how they buy their groceries, households are facing an £811 increase to their average annual bill.”
Mr McKevitt said shoppers are responding to food inflation by trading down to cheaper own label brands. Sales of these lines were up by 13.2% , well ahead of branded products at 4.6%,
The cost of living squeeze has benefitted discount stores such as Aldi and Lidl, which have seen huge market share gains, while online grocer Ocado today reported a £500 million loss as its UK sales fell.
The Kantar data comes the day after it was confirmed that average energy bills are set to go up by £500 to an average of £3000 in April.
Rocio Concha, director of policy and advocacy at consumer group Which?, 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 boost budget range availability across stores so people do not have to pay excessive prices for everyday essentials. They should also be more upfront about costs and provide clear unit pricing to help shoppers to easily compare items.”
