Fall in average cost of grocery basket

THE cost of an average basket of groceries fell slightly last month, but intense competition between supermarkets is masking rising prices, figures suggest.

A basket of 35 popular items fell to £81.93 in April from £82.15 the previous month, with no item changing price by more than 4.5%, according to the mySupermarket tracker.

The total basket was 85p cheaper than in April last year.

Apples cost 1.4% less than in March, bananas were down 1.5% and peppers were 4% cheaper. But groceries that continued to increase in price included breakfast cereals and fish fingers, both up 1.6%, and kitchen towels, which were 10p more expensive than in February.

The cost of 13 items fell, 19 increased and three stayed the same.

MySupermarket chief executive Gilad Simhony warned that the prices of many items could continue to rise.

He said: “Although the changes to the basket price are minimal, we are seeing a trend in the products that are continuing to increase month on month.

“The price competition between supermarkets is at an all-time high, and this is pushing many prices down as many retailers are using fruit and vegetables as a loss leader.

“We do expect to see a price increase in many of the ambient products in the coming months as manufacturers pass on the increase in costs they have been facing to the consumers.”