As grocery sales soar and demand the cheapest own brand ranges continues to rise, data from the supermarket industry supports the notion that consumers are eating out less to save money, as grocery sales soar and demand for the cheapest own brand ranges continues to rise.
The average cost of a year’s worth of groceries increased by about £40 in just one month, according to an industry analysis that warns it is too early to predict when food price inflation will peak.
Kantar Worldpanel recorded a new record food inflation rate of 14.7% for the four weeks ending on 30 October, indicating that buyers now face spending an average of £682 per year more for the same range of groceries than they did one year ago.
Based on a grocery inflation rate of 13.9%, the amount was £643 per month previously.
There was also substantial evidence to corroborate Sainsbury’s claim from last week that customers were eating at home more to save money as they prepared for record winter heating bills.
In the 12 weeks leading up to the end of October, grocery sales increased by 5.2%, the quickest pace of growth since April 2021.
According to separate figures from the British Retail Consortium (BRC), food purchases contributed a 1.6% increase in total retail sales last month.
Its chief executive officer, Helen Dickinson, stated, “Retail sales declined in October as the cost of living for consumers continued to climb.
“With Black Friday deals in November just around the corner, many individuals appear to be deferring buying, especially on larger products.
“Clothing and footwear sales, which were greater this year, decreased because mild weather discouraged shoppers from purchasing winter attire.
As individuals sought future cost reductions, electric blankets, air fryers, and other energy-efficient equipment continued to fly off the shelves.
In Kantar’s data, a prudent approach to budgeting was evident.
According to its survey, supermarkets’ own-label product sales increased by 10.3% over the past four weeks, while demand for the cheapest categories increased by 42%.
Fraser McKevitt, head of retail and consumer insight at Kantar, stated, “Yet again, we have a new record high for grocery price inflation, and it’s too early to identify the peak at this point.
“Consumers face a £682 increase in their yearly grocery bill if they continue to purchase the same things, and just over a quarter of all households (27%) now report financial hardship, which is double the proportion we reported in November.
“Nine out of ten members of this group cite rising food and beverage prices as a key concern, second only to rising energy costs, so it’s evident that grocery inflation is pinching people’s wallets and contributing to their home anxieties.”
Kantar reported that dairy and dog food remained among the products with the largest percentage increases.
In October, 10% of households purchased pumpkins in advance of Halloween, whereas 700,000 fewer Christmas puddings were purchased in advance of December.
