New data by insights and consulting company Kantar shows that UK grocery inflation has hit the highest level since its records began in 2008.
According to Kantar, grocery price inflation hit 11.6% in the past four weeks, the highest level since Kantar first started tracking the data in 2008.
The increase was driven by rising prices for bread, cereal and meat in particular. It means that the average annual shop is set to rise by a "staggering" £533/$641, or £10.25/$12,34 every week, if consumers buy the same products as they did in 2021.
"It’s not surprising that we’re seeing shoppers make lifestyle changes to deal with the extra demands on their household budgets," said Fraser McKevitt, head of retail and consumer insight, Worldpanel Division, UK. "Own-label ranges are at record levels of popularity, with sales rising by 7.3% and holding 51.6% of the market compared with branded products, the biggest share we’ve ever recorded."
Kantar noted that customers are shopping around in an attempt to find the best value products, but back in 2008 there was much more of a reliance on promotions. These deals are harder to find in 2022 – the number of products sold on promotion is at 24.7% for the four weeks to 7 August 2022 compared to 30% in 2008.
Prices overall in the UK are rising faster than they have done for 40 years, fueled by rising energy costs – an issue that many countries are grappling with due to the Ukraine conflict. The Bank of England predicts prices will go even higher with inflation rising to 13%.
