Grocery price inflation in the UK has hit a record high, climbing to 17.1% for the four weeks leading to 19 February.
- This surge has been revealed as the highest level ever recorded by data analytics company Kantar.
- Take-home grocery sales have mirrored this trend, increasing significantly both in the short and long term.
- Consumer behaviour has shifted, with many opting for budget-friendly alternatives while celebrating special occasions.
- These inflationary pressures are now a major concern for households, second only to energy costs.
In recent data released by Kantar, a notable spike in grocery price inflation has been observed, reaching an unprecedented 17.1% in the four weeks leading to 19 February. This marks the highest inflation level ever documented by the company, highlighting the severe economic pressures faced by consumers.
The impact on consumer spending is evident, with overall take-home grocery sales rising by 8.8% in the four-week period. A broader view over 12 weeks shows a consistent increase of 8.1%, underscoring the persistent rise in costs that shoppers are enduring.
According to Fraser McKevitt, head of retail and consumer insight at Kantar, this inflation is profoundly affecting everyday life. McKevitt remarks that, as inflation escalates, the financial strain on households intensifies, with grocery costs now ranking second to energy prices as a key concern.
A Kantar survey disclosed that financial struggles are becoming more prevalent, with a quarter of participants reporting difficulties. This is a significant rise from one in five at the same time the previous year, indicating worsening financial conditions.
Amid these economic challenges, consumer habits are adapting. Despite higher costs, Valentine’s Day celebrations continued, though many chose to celebrate at home. Notably, sales of steak surged by 25%, chilled ready meals by nearly 33%, and sparkling wine sales doubled, alongside a notable increase of £5 million in boxed chocolate purchases.
McKevitt highlights that if consumers fail to alter their purchasing strategies, they could face an additional £811 on their average annual grocery bill, adding further pressure on household budgets.
In summary, UK consumers are grappling with record-high grocery inflation, prompting significant behavioural shifts and financial concern.
