Grocery cost soars £682 for average home

GROCERY inflation has hit a record 14.7 per cent to add a potential £682 to annual food bills – and there is still no sign of a peak in sight.

Sales of supermarket own-label products jumped again by 10.3 per cent over four weeks and the cheapest value ranges grew 42 per cent as shoppers tried to budget, said Kantar.

Just over a quarter of households say they are struggling financially – double the figure recorded last November, the research firm said.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Yet again, we have a new record high figure for grocery price inflation and it’s too early right now to call the top.

“Consumers face a £682 jump in their annual grocery bill if they continue to buy the same items.

“And just over a quarter of all households now say they’re struggling financially, which is double the proportion we recorded last November.

Concern

“Nine in 10 of this group say higher food and drink prices are a major concern, second only to energy bills, so it’s clear grocery inflation is hitting people’s wallets and adding to their worries.”

Fewer people stocked the cupboards for Christmas last month, opting to wait until later.

Mr McKevitt said: “This time last year two million consumers had already bought their festive Christmas pudding.We’ve seen 32 per cent fewer shoppers doing that this time around, suggesting people are not trying to spread the cost of their purchasing – at least not in October.”

Aldi was the fastest growing retailer in the latest period, increasing sales by 22.7 per cent year on year to gain 9.2 per cent market share, while Lidl boosted sales by 21.5 per cent to take its to a record of 7.2 per cent.

Asda again led the traditional Big Four supermarkets with sales growing 5.3 per cent to maintain an overall share of 14.3 per cent.

Mr McKevitt said: “We’ve seen a rise in the market share of the discounters Aldi and Lidl, which together now stands at 16.4 per cent, versus 4.4 per cent 14 years ago.”