The cost of a family’s supermarket shopping is on course to jump by an average of £275 a year as food inflation continues to surge, consumers were warned today.
Latest figures from market analysts Worldpanel by Numerator - formerly known as Kantar - show grocery price inflation shot up to 5.2% this month, the highest level since January 2024.
With the average household spending £5,283 each year at the grocers, this latest rise could add £275 to bills if people’s shopping habits stay the same.
Prolonged dry and hot weather leading to poor crop yields and a lack of pasture, combined with the higher employment costs following increases in employer National Insurance Contributions (NIC) have been blamed for the acceleration in food inflation.
The data comes after latest figures last week from the Office for National Statistics showed food and drink prices rising by 4.5% year on year in June. This was the third consecutive increase in the food and drink rate.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: “Just under two thirds of households say they are very concerned about the cost of their grocery shopping and people are adapting their habits to avoid the full impact of price rises.
“Own label products, which are often cheaper, continue to be some of the big winners and, in fact, sales of these ranges are again outpacing brands, growing by 5.6% versus 4.9%.
“These inflationary worries aren’t just changing what we buy, but how we prepare it too. We often see people choosing to make simpler meals when they are trying to save money, and today, almost seven in ten dinner plates include fewer than six components.”
The heatwaves sent sales of iced coffee soaring with sales up by 81%. Kombucha drinks were also in hot demand with sales more than doubling over the latest four weeks compared with 2024. No and low alcohol drinks saw sales up by 21% while champagne and sparkling wine sales were 9% higher.
Ocado was again the fastest growing British grocer with sales rising by 11.7%. Meanwhile, on the high street, grocery sales at M&S were 6.5% higher than a year ago.
