Grocery price inflation hits record 17.1%

Britain's budget retailers register growth despite cost-of-living crisis

Shoppers in UK grocers and supermarkets have been facing sustained rising prices for months. PA

Grocery price inflation in Britain has reached a record 17.1 per cent, adding hundreds of pounds to shopping bills for families, figures show.

This month marks one year since monthly grocery inflation exceeded 4 per cent as consumers named it their second most important issue behind energy costs and two thirds said they were worried about rising food and drink prices, analysts Kantar said.

However, cost-of-living pressures failed to dent enthusiasm for Valentine’s Day celebrations, with sales of steak up by a quarter in the seven days to February 14 compared to the previous week.

Also this month, sales of common cold treatments rose by 82 per cent, cough liquids 78 per cent and cough lozenges 70 per cent.

Kantar said it was closely following the effect of vegetable and fruit shortages on sales in the coming weeks, although it noted that pack limits introduced by some supermarkets were unlikely to affect consumers as they usually bought fresh items in smaller quantities.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Shoppers have been facing sustained price rises for some time now and this February marks a full year since monthly grocery inflation climbed above 4 per cent. This is having a big impact on people’s lives.

“Our latest research shows that grocery price inflation is the second most important financial issue for the public behind energy costs, with two thirds of people concerned by food and drink prices, above public sector strikes and climate change.

“One quarter say they’re struggling financially, versus one in five this time last year. The numbers speak for themselves.”

Aldi’s market share reached a record 9.4 per cent and it remains the fastest-growing grocer, with sales up by 26.7 per cent.

It was closely followed by Lidl, which increased sales by 25.4 per cent and achieved a market share of 7.1 per cent.

Frozen food specialist Iceland increased its market share to 2.4 per cent, up from 2.3 per cent last year, as spending through its tills increased by 10.8 per cent.