Basic supermarket groceries up 30%
The prices of butter, milk and cheese have risen the most
New figures show the price of basic groceries like butter, milk and cheese went up 30% year-on-year at some supermarkets in December.
While overall food and drink inflation reached 15% in December across the eight major supermarkets, butters and spreads rose by an "astonishing" 29.4%, according to tracking by watchdog Which?
The basics all up:
Milk was 26.3% more expensive than a year before, while cheese (22.3%), bakery items (19.5%), water (18.6%) and savoury pies, pastries and quiches (18.5%) also saw higher-than-average price increases.
Among the worst examples of inflation over the three months to the end of December included Utterly Butterly 500g, up from £1 to £1.95 across several supermarkets, Waitrose Duchy Organic Homogenised Semi-Skimmed Milk (1 pint/568ml) rising 87.1% from 65p to £1.22, and Creamfields French Brie 200g at Tesco up 81.6% from 79p to £1.43.
The worst individual price hike on a food item across all the supermarkets was Quaker Oat So Simple Simply Apple (8x33g) at Asda, which increased 188% from £1 on average in December 2021 to an average of £2.88 in December 2022.
Across supermarket ranges, inflation was significantly higher on budget ranges (20.3%) and own-brand items (18.5%) than premium (12.6%) and branded (12.5%) alternatives, just as consumers turned to the cheaper options to cut food bills.
Which?'s supermarket food and drink inflation tracker records the annual inflation of tens of thousands of food and drink products across three months at eight major supermarkets - Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury's, Tesco and Waitrose.
Despite being the cheapest supermarket overall, Lidl's prices went up the most in December (21.1%), followed closely by Aldi (20.8%), according to Which?'s figures.
Asda had the third highest inflation at 15.4% - but closer to the industry average of 15% - followed by Waitrose (14.5%), Sainsbury's (13.7%), Tesco (13.1%), Morrisons (12.9%) and Ocado (10.5%).
Trust 'plummeting'
But Which?'s latest Consumer Insight survey also shows that trust in supermarkets is plummeting, from positive 67 in May 2021 to positive 42 now.
Trust at Aldi and Lidl tended to be lower than their rivals 18 months ago, but has stayed relatively the same during this period, leaving it now higher than average at positive 48 and positive 45 respectively.
Waitrose had the lowest level of trust (positive 29) among all consumers, although trust levels among its own customers is significantly higher, at 54.
Price rises emerged as a common reason for a lack of trust, particularly the perception prices were sometimes artificially inflated and went beyond what was necessary for businesses to offset their own rising costs.
Which? is campaigning for all supermarkets to ensure budget line items that enable a healthy diet are widely available, particularly in areas where people are most in need.
It is also calling on retailers to make pricing and offers more transparent and provide targeted promotions to support people in the areas struggling the most with access to affordable food.
Which? head of food policy, Sue Davies, said: "We know food prices have risen exponentially in the last year and our inflation tracker shows the dramatic impact this is having on everyday products at the supermarket.
"Some households are already skipping meals to make ends meet and our findings show trust in supermarkets taking a hit as many people worry they are putting profits before the people suffering during this cost-of-living crisis.
"Supermarkets must do more. Which? is calling for them to ensure everyone has easy access to basic, affordable food ranges at a store near them, particularly in areas where people are most in need, as well as pricing which enables people to easily work out best value and promotions to support people who are particularly struggling."
Supermarkets respond:
A Waitrose spokeswoman said: "Which?'s own research released today shows that our price inflation was in fact lower than the market average. We're working very hard with our suppliers to ensure we offer great value, while continuing to deliver industry-leading animal welfare standards, fresh produce grown with care and fair deals for farmers."
An Asda spokesman said: "We're working hard to keep prices in check for customers and remain the lowest-priced major supermarket - a position recognised by Which? in their regular monthly basket comparison which has named Asda as the cheapest supermarket for a big shop every month for the last three years."
An Aldi spokeswoman said: "We are the lowest-priced supermarket in Britain. Our customers will always pay less for their shop with Aldi and that is why Which? has named us as the cheapest supermarket in 2022."
Tesco said: "With household budgets under increasing pressure, we are absolutely committed to helping our customers by keeping a laser focus on the cost of the weekly shop. Earlier this week, we were pleased to be recognised by The Grocer as the retailer doing the most to keep prices down right now."
Director of food and sustainability at the British Retail Consortium, Andrew Opie, said: "Retailers understand the pressure households are under and are doing everything they can to limit price rises on their products.
"Unfortunately, the war in Ukraine has pushed up the cost of many items including wheat, fertiliser and animal feed, as well as global energy prices, leading to higher prices for many staples.
"Despite these challenges, retailers are determined to support their consumers with the cost of living and provide local communities with easy access to affordable food by expanding value ranges, keeping the price of essentials down and introducing discounts for vulnerable groups.
"Fierce competition for customers is also helping to keep prices as low as possible, despite the spiralling costs retailers face."
The cost of living crisis is affecting many:
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.