UK grocery inflation continued to climb throughout February to succeed in a brand new file excessive of 17.1%, in accordance with closely-watched business information.
Kantar Worldpanel reported that the rise over the previous 12 months meant that households confronted a possible £811 annual rise in the price of their common procuring basket.
It had been hoped {that a} decline within the tempo of grocery costs throughout December would mark a turning level in that aspect of the value of dwelling disaster.
But Kantar later revealed that short-term Christmas discounting had been largely accountable, as the large 4 chains combat to keep up market share amid the problem posed by discounters and different cheaper rivals.
Its newest report confirmed that whereas the entire main shops, except Morrisons, had expanded gross sales in the course of the 12 weeks to 19 February, Aldi, Lidl and Iceland had grown their market shares at their expense.
The lure of cheaper own-label groceries noticed Aldi obtain a file market share of 9.4% over the interval, Kantar mentioned.
Tesco, Sainsbury’s, Asda and Morrisons have expanded their very own worth choices given the shift in shopper behaviour pushed by the broader value of dwelling disaster.
Food, together with the price of many different on a regular basis merchandise, has grow to be costlier largely as a result of surge in power costs seen for the reason that Russian invasion of Ukraine.
The battle may also be blamed for a lot of commodity prices, reminiscent of wheat, rising markedly.
While the principle charge of inflation has eased from its 11.1% peak seen in October final yr, meals and different grocery prices have been a significant factor behind the CPI measure remaining stubbornly above 10%.
Unilever, which is behind a number of on a regular basis merchandise together with Marmite and Magnum ice lotions, has been amongst producers warning that value will increase are but to finish.
Producers – only one aspect of a sophisticated provide chain – are nonetheless grappling rising power payments and different prices.
It additionally stays to be seen whether or not the scarcity of salad objects, which has compelled most supermarkets to restrict gross sales, will grow to be a big inflationary headwind forward.
Kantar mentioned that the problem got here exterior of its reporting window however that it anticipated to disclose successful when its subsequent report is printed.
Its head of retail and shopper perception, Fraser McKevitt, mentioned: “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 huge impact on individuals’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 5 this time final yr.
“The numbers speak for themselves.”
Source: information.sky.com”