Grocery price rises hit record high
It could add more than £800 a year to your food shopping bill
Last updated 28th Feb 2023
New figures show grocery price inflation has reached a record 17.1%.
It could add a potential £811 to annual household shopping bills, according to analysts Kantar.
This month marks a full year since monthly grocery inflation rose beyond 4% as consumers named it their second most important issue behind energy costs and two thirds said they were concerned about food and drink prices.
However cost-of-living pressures failed to dent enthusiasm for Valentine's Day celebrations this year, with sales of steak up by a quarter in the seven days to February 14 compared to the previous week, sparkling wine sales doubling and shoppers spending an extra £5 million on boxed chocolates.
February also saw sales of cold treatments rising by 82%, cough liquids up 78% and cough lozenges 70% higher.
Kantar said it was closely following the impact of vegetable and fruit shortages on sales in the coming weeks, although it noted that the pack limits introduced by some supermarkets were unlikely to affect consumers as they usually bought fresh items in smaller quantities.
'Big impact on people's lives'
Head of retail and consumer insight at Kantar, Fraser McKevitt, said: "Shoppers have been facing sustained price rises for some time now and this February marks a full year since monthly grocery inflation climbed above 4%. This is having a big impact on people's lives.
"Our latest research shows that grocery price inflation is the second most important financial issue for the public behind energy costs, with two thirds of people concerned by food and drink prices, above public sector strikes and climate change.
"One quarter say they're struggling financially, versus one in five this time last year. The numbers speak for themselves."
Aldi's market share reached a record 9.4% and remains the fastest growing grocer, with sales up by 26.7%.
It was closely followed by Lidl, which increased sales by 25.4% and achieved a market share of 7.1%.
Frozen food specialist Iceland increased its market share to 2.4%, up from 2.3% last year, as spending through its tills increased by 10.8%.
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.