interactive investor reports on the latest Kantar grocery inflation and BRC shop price index.
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The consensus among various studies that track shop prices is that food inflation is running hot, and continues to be one of the most painful and visible aspects of inflation for many households.
“There is no escaping food inflation as part of what’s fuelling it are price jumps in everyday larder products, such as milk, pasta, bread and eggs. Rising prices are changing the way we shop. Baskets are getting smaller and more of us are ditching premium brands for cheaper alternatives. Stubborn food inflation has also left shoppers with a slim appetite for 'nice-to-have’ goods.
“Retailers are not immune to inflation, and many continue to struggle to absorb the full extent of the cost pressures arising from high commodity and global food prices, labour costs and soaring energy bills. Many have opted to pass on the bumper cost burden to customers despite a plea from the Governor of the Bank of England to hold back on price rises to prevent high inflation from becoming embedded and persistent.
“Food prices remain uncomfortably high for many, especially for those on a low-income who spend a greater share of their money on food. With many of us opting against receiving receipts at self-checkouts, it is difficult to keep track of price rises – and supermarkets aren’t likely to shout about upping prices. As such, it remains important to actively review your budget and make necessary changes to maintain financial resilience.”
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