Shoppers face £380 rise in grocery bills this year as inflation rises Business News

Shoppers are set to spend £380 more on their grocery bills this year as food price inflation hits a new 13-year high, new figures show.

Retail data firm Kantar said grocery price inflation rose to 8.3% in the four weeks to June 12 from 7% in May.

Food prices are now rising at their fastest pace since 2009, on top of soaring gas, electricity and petrol prices.

Average annual food shopping bills have risen by £100 since April alone, Kantar said.

According to the report, shoppers are increasingly swapping branded items for cheaper own-brand products as they seek to cut spending.

Sales of branded products fell 1% in the 12 weeks to June 12, while own-brand sales increased 2.9% and bargain-priced own-brand ranges jumped 12%.

Fraser McKevitt, head of retail and consumer insights at Kantar, said sales of own brand lines were “boosted by strong performances from Aldi and Lidl, both of which have an extensive repertoire own brand”.

“We may also see consumers turning to value ranges, such as Asda Smart Price, Co-op Honest Value and Sainsbury’s Imperfectly Tasty, to save money,” he added.

Despite rising food bills, data showed Britons increased their spending during the Queen’s Platinum Jubilee celebrations, with supermarket sales falling to 1.9% in the 12 weeks to June 12 – the best performance since October last year.

Supermarket sales have fallen from last year when the UK went in and out of a series of lockdowns due to waves of Covid-19.

Sales over the past four weeks were up 0.4% year on year, Kantar found, with sales during the Platinum Jubilee week of £87m above the 2022 average.

Mr McKevitt said: “The sector has not seen growth since April 2021, as it compares to record sales during the pandemic.

“However, these latest figures show that the market is reverting to some extent to pre-Covid norms as we begin comparisons with post-lockdown periods.”

He added: “The inflation figure makes for a tough read and buyers will be watching budgets closely as the cost of living crisis takes its toll.”