Rising cost of groceries difficult to swallow
31st August 2022 10:24
by Myron Jobson from interactive investor
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interactive investor comments on the BRC-Nielsen Shop Price Index, a monthly measure of UK shop price inflation, as the cost-of-living crunch intensifies.
- Shops and supermarkets in Britain increased prices by 5.1% in the 12 months to August, the largest rise in records dating back to 2005, according to latest BRC-Nielsen Shop Price Index for August.
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Shopping for groceries is taking a bigger bite out of household budgets, with shop price inflation hitting a new record high in August. There is seemingly no escape from higher prices as it is the cost of popular shopping basket items such as milk, margarine and crisps that are rising fastest.
“The escalating cost of food and everyday essentials is difficult to stomach at a time when we are spending more in all other areas of expenditure – with soaring energy bills, in particular, a pain point.
“Escalating food prices are changing the way we eat and grocery shop. More and more Britons are ditching premium brands and are switching to cheaper store brand alternatives, and some are making do with less. Those living on the breadline are forced to take more aggressive steps to save - we have seen worrying reports of people forgoing meals because of the bumper cost of food.
“Businesses aren’t just raising sticker prices, but they are also reducing the size of goods. Consumers also face paying more for less."
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