'No peak in sight' for food price rises with inflation spiking to record of nearly 15 per cent

8 November 2022, 12:31 | Updated: 8 November 2022, 14:09

Inflation has reached record levels. Picture: Getty

By Kit Heren

There is no peak in sight for food prices, an expert has said, as inflation reached record levels on Tuesday.

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People may have to pay an extra £682 on their annual grocery bills if they continue to buy the same items, research firm Kantars has found - with inflation at a record 14.7%.

Evidence is mounting that shoppers are trying to cut costs. Sales of supermarket own-label products went up again by 10.3% over the last four weeks. The cheapest ranges sold 42% more.

Meanwhile more than a quarter of households said they were struggling financially, double the proportion recorded a year ago.

It comes as consumer researchers Which? release a list of the 50 areas in the UK worst affected by food poverty as winter approaches.

Inflation surges back to 40-year high after food prices soar

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.

"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."

'Obviously we've seen the inflation figures. It's not where we want them to be'

Shoppers usually try to spread Christmas costs over a few months, but fewer people had started stocking the cupboards for the festive season in October.

Meanwhile pumpkin sales were also down this year, with just over one in ten households buying the traditional Halloween gourd.

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."

The average annual food shop has gone up by £682. Picture: Getty

Aldi was the fastest growing supermarket, with sales growing nearly 23% over the past four weeks year-on-year, meaning the budget retailer has more than 9% of overall market share.

Rival Lidl increases sales by almost 22%, with its market share topping 7%.

Of the big four supermarkets Asda performed the best, with sales growing by more than 5%, with market share staying at around 14%.

Mr McKevitt said: "With economic forecasters warning of a potential recession, it's worth reflecting on how much the grocery landscape has changed since the 2008 financial crash.

"We've seen a rise in the market share of the discounters Aldi and Lidl, which together now stands at 16.4%, versus 4.4% 14 years ago."

It comes after Consumer research firm Which? and the Consumer Research Data Centre at the University of Leeds identified the places around the UK where households are most likely to be in need of extra support to put food on the table.

Low income, poor access to affordable food, having no large supermarkets nearby, a lack of online shopping deliveries or circumstances such as no car access make it difficult to shop around and can all make it difficult for people to find healthy and affordable food, researchers said.

They created the list, divided up into England, Scotland, Wales and Northern Ireland, using these factors, finding that the north-east of England is the region most in need of support.

England

1. Birmingham, Hodge Hill, West Midlands

2. Knowsley, North West

3. Houghton and Sunderland South, North East

4. Birmingham, Northfield, West Midlands

5. Birmingham, Perry Barr, West Midlands

6. Blackley and Broughton, North West

7. Bradford South, Yorkshire and The Humber

8. North West Durham, North East

9. Blaydon. North East

10. Bishop Auckland, North East

11. Birmingham, Yardley, West Midlands