Interactive Investor

Food taking a bigger bite out of budgets amid soaring prices

29th March 2022 09:58

Myron Jobson from interactive investor

interactive investor comments on Kantar grocery price inflation figures.

  • Grocery price inflation hit 5.2% in March, according to Kantar.
  • This is the highest level since April 2012.
  • As costs rise, consumers are turning to own-label products, which now account for 50.6% of all spending.
  • Retailers are also adapting including moving away from ‘round pound’ prices – the percentage of packs sold at either £1, £2 or £3 has fallen by 2.3 percentage points over the past year.

Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The escalating cost of food is difficult to stomach at a time when we are spending more to heat our homes, have hot showers, cook and fill up the tank.

“Going to the shop for groceries is taking a bigger bite out of household budgets amid soaring prices. Everything from snacks such as Doritos to everyday items like milk and tea have risen in price. And items that have not risen in price are seemingly getting smaller, with the humble Dairy Milk sharing bar becoming the latest product to undergo shrinkflation.

“Food manufacturers are raising prices across the board to offset higher costs for commodities, labour, transportation and other expenses during the pandemic. These costs have escalated in recent history and retailers have passed more of these increases down to shoppers.

“It is interesting that more of us are turning to own-label products to reduce the grocery bill, but the cost benefits of switching to lower-priced store brand equivalents wane when prices are rising across the board. Rising prices makes it difficult to cut down on costs and has a disproportionally acute impact on low-income households.

“The headline grocery price inflation figure can dramatically differ from your own personal inflation number. interactive investor’s sample grocery basket* found that staple goods have increased by as much as 56%. As the cost of living continues to surge, and we all begin to evaluate our spending habits, you must look at what makes sense for you – not an arbitrary measurement from anyone else.”

Notes to editors

*The 10 biggest percentage price increases in an example Asda shopping basket over the past six months



Price in March 2022

Diff (£)


ASDA Fusilli 500g





Napolina Double Concentrate Tomato Purée 200g





Oral-B Pro Expert All Round Protection Clean Mint Toothpaste 75ml





ASDA Mild Bistro Salad 170g





Bonne Maman Strawberry Conserve 370g





ASDA Mild & Creamy Brie 200g





ASDA Greek Style Fat Free Yogurt 500g





ASDA Grower's Selection Ripe & Ready Medium Avocados 2pk





ASDA Semi Skimmed Milk 2 pint





Doritos Cool Original Sharing Tortilla Chips 180g





Source: interactive investor

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