Supermarket prices rise at fastest rate in four years

Supermarket prices rose at their fastest rate in four years over the past three months, figures show.

The latest rise in inflation is now at 3.4 per cent. This means a typical family is set to pay an extra £144 a year for their groceries, Kantar Worldpanel said.

Sales across the market over the 12 weeks to 5 November were up 3.2 per cent on last year. However, this was almost all down to the rising rate of inflation, according to Kantar’s analysis.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Volume sales have increased by less than 1 per cent, meaning it’s price rises keeping supermarket performance buoyant.

“Like-for-like grocery inflation now stands at 3.4 per cent, its highest level since November 2013. With the average shop currently costing £18.26, consumers are now paying an extra 62 pence each time.

“Over the course of a year it could add £143.70 to a typical family’s grocery bill”.

Most grocery products were more expensive, with prices rising fastest in categories such as butter, where a milk shortage has pushed up prices, fish and cola.

Prices fell for only a few product categories, including crisps and fresh poultry.

Prices have been rising since the start of this year following 30 consecutive periods of deflation from September 2014 to December 2016 as supermarkets engaged in a fierce price war.

Mr McKevitt said: “Consumers have already been digging deep in preparation for the holiday season, buying 10.1 million packs of traditional Christmas biscuits in October alone.

“The British public is only just getting started when it comes to Christmas shopping, and is expected to shell out a whopping £28.7bn at the grocers in the final 12 weeks of 2017”.

TNT Business

Photo Credit: Max Pixel

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