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You can find the current article at its original source at https://www.theguardian.com/business/2022/nov/08/uk-shoppers-budget-grocery-price-inflation-aldi-lidl
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| UK shoppers switch to budget ranges as grocery price inflation hits record high | UK shoppers switch to budget ranges as grocery price inflation hits record high |
| (about 13 hours later) | |
| Discounters Aldi and Lidl benefit as figures reveal annual cost of grocery shop has soared by £682 | Discounters Aldi and Lidl benefit as figures reveal annual cost of grocery shop has soared by £682 |
| British shoppers are making a big switch to budget ranges and discount chains as supermarket inflation reached a record high of nearly 15% last month, driving up the average annual bill by £682 a year. | British shoppers are making a big switch to budget ranges and discount chains as supermarket inflation reached a record high of nearly 15% last month, driving up the average annual bill by £682 a year. |
| Just over a quarter of all households say they are struggling financially, double the proportion a year ago, as the cost of groceries soared 14.7% in October compared with a year ago. That is the highest level since Kantar, which produces the data, began tracking price changes in 2008. | Just over a quarter of all households say they are struggling financially, double the proportion a year ago, as the cost of groceries soared 14.7% in October compared with a year ago. That is the highest level since Kantar, which produces the data, began tracking price changes in 2008. |
| Fraser McKevitt, the head of retail and consumer insight at Kantar, said: “Yet again, we have a new record high figure for grocery price inflation and it’s too early right now to call the top.” | Fraser McKevitt, the head of retail and consumer insight at Kantar, said: “Yet again, we have a new record high figure for grocery price inflation and it’s too early right now to call the top.” |
| He said nine in 10 of those concerned about their finances said food and drink prices were a worry, second only to energy bills, “so it’s clear just how much grocery inflation is hitting people’s wallets and adding to their domestic worries”. | He said nine in 10 of those concerned about their finances said food and drink prices were a worry, second only to energy bills, “so it’s clear just how much grocery inflation is hitting people’s wallets and adding to their domestic worries”. |
| Sales of the very cheapest supermarket own-label ranges have risen 42%, although some of that will be down to price increases, while sales of branded goods rose 0.4%, indicating a big fall in the number of items sold after inflation is taken into account. | Sales of the very cheapest supermarket own-label ranges have risen 42%, although some of that will be down to price increases, while sales of branded goods rose 0.4%, indicating a big fall in the number of items sold after inflation is taken into account. |
| Discounters Aldi and Lidl are also benefiting from households’ efforts to manage their budget with sales up 22.7% and 21.5% respectively in the three months to the end of October compared with 5.2% growth for the market as a whole. In contrast, Morrisons, Waitrose and independent grocery stores reported sales falls. | Discounters Aldi and Lidl are also benefiting from households’ efforts to manage their budget with sales up 22.7% and 21.5% respectively in the three months to the end of October compared with 5.2% growth for the market as a whole. In contrast, Morrisons, Waitrose and independent grocery stores reported sales falls. |
| McKevitt said there were signs of shoppers reining in spending on non-essentials, with sales of pumpkins for Halloween down on last year. Sales of discounted confectionary also fell. | McKevitt said there were signs of shoppers reining in spending on non-essentials, with sales of pumpkins for Halloween down on last year. Sales of discounted confectionary also fell. |
| The muted response to Halloween, now a big event on the UK shopping calendar, could indicate a similar dampener on spending for Christmas. | The muted response to Halloween, now a big event on the UK shopping calendar, could indicate a similar dampener on spending for Christmas. |
| British shoppers are expected to spend £4.4bn less on non-essentials – a fall of 22% – in the run-up to Christmas as a surge in the cost of living puts a squeeze on their spare cash. | British shoppers are expected to spend £4.4bn less on non-essentials – a fall of 22% – in the run-up to Christmas as a surge in the cost of living puts a squeeze on their spare cash. |
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| When it comes to festive food and drink, 44% of those questioned said they would be cutting back this year, including turkey and mulled wine, in the latest survey from the debit and credit card company Barclaycard. Two-fifths said they were planning to curb their spending on Christmas parties and socialising. Spending at supermarkets rose 4.6% in October, below the rate of inflation, indicating reductions in the number of items bought or a switch to cut-price ranges. | When it comes to festive food and drink, 44% of those questioned said they would be cutting back this year, including turkey and mulled wine, in the latest survey from the debit and credit card company Barclaycard. Two-fifths said they were planning to curb their spending on Christmas parties and socialising. Spending at supermarkets rose 4.6% in October, below the rate of inflation, indicating reductions in the number of items bought or a switch to cut-price ranges. |
| McKevitt said: “This time last year 2 million consumers had already bought their festive Christmas pudding. We’ve seen 32% fewer shoppers doing that this time around, suggesting people are not trying to spread the cost of their purchasing – at least not in October.” | McKevitt said: “This time last year 2 million consumers had already bought their festive Christmas pudding. We’ve seen 32% fewer shoppers doing that this time around, suggesting people are not trying to spread the cost of their purchasing – at least not in October.” |
| Kantar’s findings are at odds with Sainsbury’s take on Christmas shopping. The supermarket said it had moved its festive advertising launch a week early because its customers were spreading the cost of their annual blowout, buying some items earlier than usual. | Kantar’s findings are at odds with Sainsbury’s take on Christmas shopping. The supermarket said it had moved its festive advertising launch a week early because its customers were spreading the cost of their annual blowout, buying some items earlier than usual. |