Grocery price inflation in the UK has surged to 17.1%, a record high.
- Overall grocery sales increased by 8.8% in the latest four weeks, 8.1% over 12 weeks.
- Monthly grocery inflation has consistently exceeded 4% for a year now.
- Grocery price inflation ranks second only to energy costs as a financial concern.
- A significant portion of consumers are adapting by adjusting purchasing behaviors.
Grocery price inflation in the UK has ascended to a remarkable 17.1% for the four weeks ending on February 19, marking the highest level ever documented by Kantar. This dramatic rise is particularly alarming, given that just a year ago, inflation had managed to surpass the 4% threshold, signifying a persistent upward trend in the cost of groceries.
During this period, the total take-home grocery sales soared by 8.8%. Over the broader 12-week span, this increase slightly reduced to 8.1%, yet it still indicates robust sales growth despite substantial inflationary pressures. According to Fraser McKevitt, the head of retail and consumer insight at Kantar, the soaring inflation rates are significantly impacting consumers’ financial well-being.
Kantar’s latest research highlights that grocery price inflation is currently the second most pressing financial issue for the British public, following closely behind energy costs. Over two-thirds of the population express concerns over food and drink prices, which are now seen as more critical than considerations like public sector strikes and climate change.
A recent survey by Kantar revealed that 25% of participants acknowledged financial struggles, compared to 20% at the same time last year. McKevitt warns of a potential £811 increase in the average annual grocery bill if consumer buying habits remain unchanged, underlying the necessity for consumers to reevaluate their purchasing strategies.
Interestingly, despite rising costs, consumer spending habits around Valentine’s Day reflected a desire to economize. Shoppers opted to celebrate at home, leading to increased purchases of specific items from major supermarkets. Sales of steak jumped by 25% in the week leading up to Valentine’s Day, while chilled ready meals surged by nearly a third. In the same period, sparkling wine sales doubled, along with an extra £5 million spent on boxed chocolates.
The escalating grocery price inflation in the UK emphasizes a clear need for consumers and policymakers to address this growing economic challenge.
