Cost of living crisis: Average UK supermarket grocery bill to increase by £788 as food inflation hits 16.7%
Families already struggling to cope during the cost of living crisis are facing a whopping £788 increase on their food bill as prices surge at record rates.
Food prices are surging at record rates with supermarket shoppers now facing a potential £788 increase on their grocery bill each year. New figures by Kantar show food inflation has hit 16.7% in the four weeks leading to January 22, the highest since its records began in 2008.
It’s a sharp jump from December, when the food inflation rate stood at 14.7%. In comparison, overall Consumer Price Index (CPI) inflation, which does measure annual growth in retail but also more widely in energy bills, haircuts and restaurant meals, is now at 10.5%.
The latest increase takes the average annual food shopping bill to £5,504, up by £788, with the price of milk, eggs and dog food rising the fastest.
The monthly report from Kantar also shed light on changing shopping habits. Sales of alcohol free beer, for example, increased by three per cent as many people embraced Dry January. Veganuary also made an impact, with sales of supermarket own-label ranges labelled as plant-based or vegan jumping by 21%.
Overall, grocery sales increased 5.7% year on year during the four week period, and by more than 7.6% across the 12 weeks to January 22. Head of retail and consumer insight at Kantar, Fraser McKevitt, 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 offer customers value amid rising inflation, supermarkets have expanded their own-label ranges. Sales of own-label products increased by 9.3% in January, while branded alternatives were up just one per cent.
German budget retailer Aldi was the fastest growing grocer for the fourth month in a row, with sales 26.9% higher year on year - giving the chain a 9.2% slice of the market. Lidl’s
sales jumped by 24.1%, putting its market share at 7.1%.
Bigger rivals Tesco, Sainsbury’s and Asda increased their sales by about 6%, while Morrisons’ sales dropped 1.9%.