Average grocery bill set to rise £380 as inflation hit 8.3 per cent

British shoppers swapped branded items for cheaper own-label products and turned to value ranges to help manage grocery inflation which soared to 8.3 per cent in the four weeks to June 12, its highest level since April 2009, industry data showed on Tuesday.

Market researcher Kantar said prices are rising fastest in markets such as butter, milk and dog food, while falling in spirits.

It said supermarkets’ sales of branded items fell 1 per cent over the four weeks year-on-year, while sales of own-label products rose 2.9 per cent, boosted by strong performances from German-owned discounters Aldi and Lidl, which have extensive own-label repertoires.

Kantar said sales of value ranges, such as Asda Smart Price, Co-op Honest Value and Sainsbury’s Imperfectly Tasty, grew by 12 per cent.

The comments on consumer behaviour echoed those from market leader Tesco last Friday.

Kantar said that based on its latest data, the average annual grocery bill in the UK is on course to rise by £380.

“This is over £100 more than the number we reported in April this year, showing just how sharp price increases have been recently and the impact inflation is having on the sector,” said Fraser McKevitt, head of retail and consumer insight at Kantar.

Kantar said store footfall jumped by 3.4 per cent over the latest four weeks, while online fell to its lowest proportion of the grocery market since May 2020 at 12 per cebnt. Digital orders fell by almost 9 per cent in June.

“As well as the return to pre-Covid habits, this drop could also be the result of shoppers looking to cut costs by avoiding delivery charges,” said McKevitt.

Kantar said supermarket sales fell by 1.9 per cent during the 12 weeks to June 12 year-on-year, but were up 0.4 per cent in the latter four week period.

Only the discounters Aldi and Lidl increased sales in the 12-week period, and symbols and independents have seen the worst decline, with sales falling 12.3 per cent year-on-year.

Sales during the week of the queen’s Platinum Jubilee (to June 5) were £87 million higher than on average in 2022, Kantar added.