Food bills set to rise by £380 per year

UK shoppers are cutting back at the supermarket as prices rise on everyday goods, according to research firm Kantar.

Its latest report shows that like-for-like grocery prices rose by 8.3% over the past month, the highest rate in 13 years.

As a result, shoppers will pay around £380 more for groceries this year, or an extra £32 a month.

Consumers are taking steps to manage the impact of rising prices at the tills, Kantar found. For example, shoppers have swapped branded items, which have declined by 1%, for own-label products which are often cheaper. Sales of these lines have risen by 2.9%, boosted by strong performance from Aldi and Lidl, both of which have extensive own-label ranges. Meanwhile, the cheapest own-label lines have grown by 12% as consumers turn to value ranges, such as Asda Smart Price, Co-op Honest Value and Sainsbury’s Imperfectly Tasty, to save money.

Official figures show that overall inflation rose to 9% in the 12 months to April, up from 7% in March and the highest rate for 40 years.

Despite the rising cost of living, grocery spending increased in the week leading up to the Queen’s Platinum Jubilee celebrations at the beginning of June, with purchases of alcohol and ice cream up by about a third compared with the 2022 average.