Grocery price inflation has risen again, hitting a record 14.7% and adding a potential £682 to the average annual cost of a typical basket amid warnings there is still no sign of a peak.
According to the latest monthly data from research firm Kantar, sales of supermarket own-label products jumped by a further 10.3% over the past four weeks. Sales of the cheapest value ranges grew by 42% as shoppers looked for ways to keep their spending low.
Supermarket own-label sales also jumped by a further 10.3% over the period, with sales the cheapest value ranges growing by 42% as shoppers sought out bargains in a bid curb their spending.
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.
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“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 just how much grocery inflation is hitting people’s wallets and adding to their domestic worries.”
The data also revealed that fewer households have been stocking their cupboards for Christmas in October, preferring to wait until closer to the holiday season.
Mr McKevitt said: “This time last year two million consumers had already bought their festive Christmas pudding. We’ve seen 32% 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 continued to grow its market share, which rose to 9.2% (with a 22.7% increase in sales year-on-year), while Lidl’s market share also jumped to a record high of 7.2% (and a 21.5% increase in sales on last year’s figures).
Asda’s sales also grew by 5.3%, more than any of the other major supermarkets, helping it to maintain an overall market share of 14.3%.
The combined market share of discounters Aldi and Lidl now stands at 16.4%, up from 4.4% 14 years ago – during the 2008 financial crash.
