UK grocery costs rose at their quickest tempo in 15 years, in accordance the latest knowledge from a intently watched survey, in distinction to newest official figures that advised meals inflation was slowing down.
Annual meals costs rose 17.1 per cent within the 4 weeks to February 19, analysis agency Kantar mentioned on Tuesday, the very best determine on report because the month-to-month survey started in 2008.
“Grocery value inflation is the second most essential monetary difficulty for the general public behind vitality prices, with two-thirds of individuals involved by foods and drinks costs,” mentioned Fraser McKevitt, head of retail and client perception at Kantar.
Meals inflation a yr earlier was working at 4.3 per cent, in accordance with Kantar. It mentioned the most recent soar in costs would add £811 to the typical British family’s yearly purchasing invoice. “That is having a huge impact on folks’s lives,” McKevitt added.
The newest Kantar knowledge contrasts with official figures that confirmed a slight fall in meals and non-alcoholic drink inflation in January, down 0.1 factors to 16.7 per cent in contrast with a month earlier however nonetheless near the very best degree since Workplace for Nationwide Statistics data started in 1988.
Headline inflation slowed to a five-month low of 10.1 per cent in January, retreating additional away from its 41-year peak in October, in accordance with the ONS. Official inflation knowledge for February might be launched on March 22.
Kantar analysis confirmed that customers have been shunning branded merchandise in an effort to save lots of, with gross sales of supermarkets’ personal labels rising 13.2 per cent this month, in “a pattern that reveals little signal of stopping”, mentioned McKevitt.
The low cost supermarkets continued to learn as customers turn out to be extra value delicate, with Aldi and Lidl each boosting their gross sales greater than 20 per cent yr on yr. The 2 chains market share rose to 16.5 per cent, up from 14.1 per cent a yr earlier, in accordance with Kantar.
Much less prosperous households might be hit hardest by steep value rises at supermarkets with the poorest 10 per cent spending practically a fifth of their weekly earnings on meals, in accordance with the ONS.
McKevitt mentioned he anticipated the latest rationing of salad greens by 5 out of the six largest supermarkets was “unlikely to drastically have an effect on shoppers” as they have an inclination to purchase fruit and veg in smaller portions than the higher restrict set by retailers.
