- Staple Food Prices Decline: UK Consumers Benefit as Milk and Oil Prices Edge Down
- Moderating Grocery Inflation: Overall Food Price Increases Beginning to Slow Down
- Consumer Behavior and Retail Trends: Private-Label Sales Rise, Branded Goods See Mixed Prices
New data indicates that the prices of food staples such as oil and milk are eventually “edging down” even though grocery bills remain high.
In July, consumers paid an average of £1.50 for four liters of milk, down from £1.69 in March, according to research firm Kantar.
Currently, the average price of a liter of sunflower oil is £2.19, 22p less than in the spring.
It occurs as grocery inflation – the rate of overall food price increases – remains elevated but is beginning to moderate.
According to Kantar, which monitors the purchasing patterns of 36,000 British households, prices rose 12.7% annually in the four weeks preceding August 6.
This is a decline from the previous month’s 14.9%.
Due in large part to the conflict in Ukraine, food prices skyrocketed last year. But there are indications that pressures may be beginning to ease as wholesale prices decline.
Under pressure to help suffering shoppers, major supermarkets have lowered the price of eggs, milk, and toilet paper.
It follows allegations that they have failed to pass on declining wholesale prices to consumers, which they deny.
Fraser McKevitt, head of retail and consumer insight at Kantar, stated that grocery prices were “still up year-on-year across every supermarket shelf” in the United Kingdom, but that consumers “will have been relieved” to see the price of some staples decrease compared to earlier in the year.
According to him, consumers continue to seek methods to reduce their grocery bills, such as shopping at discount retailers Aldi and Lidl or purchasing cheaper supermarket private-label products.
Kantar discovered that sales of private-label products remained popular last month, increasing 9.7% annually. Sales of higher-priced branded goods increased, suggesting consumer confidence.
Despite separate research from consumer groups Which? indicating that the price of some branded goods on supermarket displays has more than doubled in the past year, and the price of generic goods has decreased.
The consumer champion monitored nearly 26,000 food items at eight major supermarkets and discovered:
The most expensive Mr. Kipling chocolate section in Tesco’s six-pack rose from £1.16 in 2022 to £2.66 in July 2023.
The price of 1kg of Lancashire Farm natural yogurt at Asda increased by 80%, from £1 to £1.80.
The price of 180g of Pilgrims Choice extra mature grated cheddar increased by 76% at Morrisons, from £1.20 to £2.11.
Food prices have been one of the largest contributors to the United Kingdom’s persistently high inflation rate.
UK price hikes are expected to decrease to 6.7%–7% in July from 7.7% in June.
The Bank of England expects food prices to rise throughout the year, straining millions of people.
Its chief economist, Huw Pill, stated last week that the return of reduced food prices is “something we may not see for some time, if ever.”
