UK food inflation hits highest level in 13 years, pushing up annual grocery bills by £380 – Business Live | Company

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Despite rising food bills, Britons splurged on the Queen’s Platinum Jubilee celebrations.

Sales during the Platinum Jubilee week (which included two public holidays) were £87m higher than in an average week, with alcohol and ice creams up.

Market leader Tesco and Aldi and Lidl were the only groups to increase their market share in sales value over the 12 weeks.

Only discounters increased their sales, reports Kantar, as customers tried to make their money grow.

Supermarket sales fell 1.9% in the 12 weeks to June 12 year on year, but rose 0.4% in the past four weeks.

Introduction: Food inflation hits its highest level in 13 years

Hello and welcome to our ongoing coverage of business, the global economy and financial markets.

UK consumers are facing the biggest rise in their food bills in 13 years as the cost of living crisis hits households.

Grocery price inflation soared to 8.3% in the four weeks to June 12 – down from 7% a month earlier and its highest level since April 2009, according to new figures from data firm Kantar.

That means annual grocery bills jump £380 this year, increasing the burden on people who also have to deal with rising energy bills and record high prices for gasoline and diesel at the pumps.

Fraser McKevitthead of retail and consumer insights at Kantar, says food bills are rising sharply:

“This is over £100 more than the figure we reported in April this year, showing how steep price rises have been recently and the impact of inflation on the sector,”

With soaring food prices, shoppers are increasingly swapping branded items for cheaper own brand products.

Kantar reports that sales of branded products fell 1% in the 12 weeks to June 12, while own-label sales increased 2.9% and bargain own-label lines jumped by 12%.

McKevitt said sales of own-brand lines were “boosted by strong performances from Aldi and Lidl, both of which have extensive own-brand repertoires”, adding:

“We may also see consumers turning to value ranges, such as Asda Smart Price, Co-op Honest Value and Sainsbury’s Imperfectly Tasty, to save money.”

We reported last month that the ‘golden age’ of cheap food in the UK was over, and figures from Kantar confirm that the pressure on households is getting worse.

Also coming today

Britain’s biggest national rail strike for 30 years has begun, leaving train passengers facing widespread disruption and cancellations as workers responsible for train lines and infrastructure across the UK quit.

Industry leaders fear the economic disruption could be significant as travelers and commuters decide to stay home, with strikes also scheduled for Thursday and Saturday.

Waterloo Station this morning, the first day of the National Railway Strike in London. Photograph: Henry Nicholls/Reuters

Yesterday’s dead-end talks failed to resolve the bitter dispute over wages, jobs and conditions, with all sides blaming each other for the lack of progress.

The RMT said the train operating companies made a late payment offer yesterday, estimated at around 2-3%, with conditions attached and no guarantees against compulsory layoffs. This is well below inflation, which hit 9% in April.

richard Burgedgeneral manager of the London Chamber of Commerce and Industrywarned that the capital “cannot afford a summer of chaos on the railways and metro lines”, given the slowing economy.

“While this strike is damaging, a recession seems likely regardless; as such, I would not attribute any possible recession to this strike. »

Agenda

  • 8am BST: Kantar report on UK grocery sector
  • 11am BST: CBI survey of industrial trends in UK factories in May
  • 1:30 p.m. BST: Chicago Fed National Activity Index
  • 3:00 p.m. BST: US existing home sales for May

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