adding almost £800 to annual bills

Adding almost £800 to annual bills, the UK supermarket cost inflation hits record high.

The grocery prices are expensive and will continue to surge at a faster pace throughout the year . The cost of basic essentials too will remain high, Britain’s retailer conveyed.

Even as the UK’s official inflation rates regarding all goods and services are bound to fade in the coming months, the cost of food and drinks, clothing and other goods sold in shops and online would continue to rise at a faster pace, as per the British Retail Consortium.

The chief executive of the BRC, Helen Dickinson, stated: “As retailers still face ongoing headwinds from rising energy bills and labour shortages, prices are yet to peak and will likely remain high in the near term as a result.”

She further conveyed that a drop in the global cost of oil and food would allow some easing in the inflationary pressure.

The official inflation rate for the UK, which tracks yearly price increases in retail as well as more broadly in restaurant meals, energy costs, and haircuts, has declined from a peak of 11.1% in October to slightly over 10% in December.

The cost of food has inflated as the producers include the cost of higher energy bills and raw materials. There has been a huge surge in the cost of sugar, alcohol, fruits and vegetables in the past months as observed by the BRC.

The figures revealed from Kantar, a retail analyst, suggested the cost of grocery has inflated a record high of 16.7% in four weeks to 22 January, roughly adding  £800 to the general annual shopping bill with the cost of milk, eggs, and dog food surging at a quicker pace.

The number increased from 14.4% in December and hit its highest point since Kantar started keeping track of the data in 2008. The most recent rise will result in an average annual food shopping spend of £5,504, an increase of £788.

As per the monthly reports the sales volume for no- and low-alcohol rose 3% previous year as many enjoyed the dry spell in January. The sales for plant-based or  vegan food jumped to an astonishing 21% when the supermarket introduced its own-labeled ranges.

The head of retail and consumer insight at Kantar, Fraser McKevitt, said: “Late last year, we saw the rate of grocery price inflation dip slightly, but that small sign of relief for consumers has been short-lived. Households will now face an extra £788 on their annual shopping bills if they don’t change their behaviour to cut costs.

Offering its own-label ranges to customers, supermarkets diversified in the middle of record inflation. Although alternative brands were up by 1%, the sales of own-label products surged by 9.3% in January.

McKevitt stated: “Across the market the move is towards everyday low pricing, with many supermarkets offering price matching and using their loyalty schemes to help shoppers save.”

“As a result of this push, the proportion of spending on promotions has fallen to its lowest level since at least 2008 this month, exaggerating the usual post-Christmas drop-off in deals.”

Aldi, a German grocery retail discounter, saw the fastest growth for four consecutive years in a row thanks to its sales 26.9%  higher compared to previous year with a market share of 9.2%. Lidl’s sales surged by 24.1%, with a slice of 7.1%.

Tesco, Asda and Sainsbury’s, their biggest rivals had their sales increased by roughly 6%, with Morrisons declined by 1.9%.

- Published By Team Timeswire

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