Food inflation at record high leaves bitter taste in run-up to Christmas
30th November 2022 09:53
by Myron Jobson from interactive investor
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Myron Jobson, senior personal finance analyst at interactive investor, comments on BRC shop price inflation.
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Going to the shops for groceries isn’t getting any cheaper, which does not bode well for shoppers on the eve of the festive season.
“UK food price inflation jumped to a new record high of 12.4% in November, driven by the rising cost of meat, eggs and dairy. More broadly, shop price annual inflation jumped to 7.4% in November – its highest level since records began in 2005 and up from 6.6% in October.
“Our shopping baskets are increasingly weighing down our wallets because of some eye-watering rises in the prices of everyday essentials. Something as simple as fresh fruit and cheese have seen a sharp rise in price because of the spiralling cost of fertiliser and animal feed. Low-income households spend a greater portion of their incomes on food, so the price rises are set to hit them particularly hard.
“We are all increasingly feeling the brunt of runaway food inflation as retailers struggle to absorb the full extent of the cost pressures arising from more expensive transportation, labour shortages, and rising commodity and global food prices.
“With the factors stoking food inflation showing no signs of abating, we may find some of our Christmas shopping more expensive this year.
“Our own research* found that the cost of Christmas dinner has gone up by 19% for vegetarians and 11% for a turkey meal compared to last year, with the cost of Christmas trimmings seeing the largest percentage increases – albeit from lower price points. At many Christmas gatherings this year, inflation will be on the menu.
“Not everyone tracks their spend on food, but it is important to remember that we all have our own, relative, inflation number which could be higher or lower than the headline figures. As such, when evaluating your spending habits, you must look at what makes sense for you.
“Making use of supermarket loyalty cards and schemes can go a long way in offsetting price increases. Most loyalty initiatives offer worthwhile savings ranging from exclusive discounts for members to freebies by earning points. Every little helps amid the biggest fall in living standards in generations.”
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