Grocery price inflation hits record high
The 16% rise could see you spend an extra £788 a year on food shopping
New figures show grocery price inflation has hit a record 16.7%, to add a potential £788 to annual shopping bills.
The "staggering" 2.3 percentage point jump in the four weeks to January 22 has exceeded the previous high, recorded by analysts Kantar in October and is the highest figure since their records began in 2008.
Intense competition among grocers striving to retain customers saw them boosting their own-label ranges, with sales of these growing by 9.3% in January - well ahead of branded alternatives, which were up by just 1%.
Despite price rises, consumers appear to have maintained New Year's resolutions and a commitment to Dry January, with sales volumes of no and low alcohol beer up 3% on last year.
Overall take-home grocery sales rose by 5.7% during the four-week period and by 7.6% over the quarter.
Head of retail and consumer insight at Kantar, Fraser McKevitt, said: "Late last year, we saw the rate of grocery price inflation dip slightly, but that small sign of relief for consumers has been short-lived.
"Households will now face an extra £788 on their annual shopping bills if they don't change their behaviour to cut costs.
"Across the market the move is towards everyday low pricing, with many supermarkets offering price matching and using their loyalty schemes to help shoppers save.
"As a result of this push, the proportion of spending on promotions has dropped to its lowest level since at least 2008 this month, exaggerating the usual post-Christmas drop off in deals."
Aldi was the fastest-growing grocer for the fourth month in a row, with sales up 26.9% year on year and now holding 9.2% of the market. Lidl's sales jumped by 24.1% to give it a 7.1% market share.
Among the three largest grocers, Sainsbury's sales increased by 6.1%, just 0.1 percentage points higher than Asda and Tesco, to give it 15.4% of the market.
Tesco remains the largest British retailer with a 27.5% market share while Asda holds 14.2%.
The cost of living criis 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.