Grocery prices were 5.9% higher in April than a year ago, the biggest increase since December 2011, according to research company Kantar.
Kantar suggests that shoppers are turning to discount retailers Aldi and Lidl as pressures on budgets grows. Supply chain issues, the Ukraine war and rising raw material costs are all contributing to soaring food prices.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The average household will now be exposed to a potential extra £271 per year.
“A lot of this is going on non-discretionary, everyday essentials which will prove difficult to cut back on as budgets are squeezed. We’re seeing a clear flight to value as shoppers watch their pennies.”
Aldi was the fastest growing retailer during the period the data covers, with its sales increasing by 4.2% over the 12 weeks to 17th April. This was closely followed by Lidl, which was up 4%.
More than one million extra shoppers visited the two retailers respectively over the period compared with this time last year, with both achieving record-breaking market shares, according to Kantar.
Rising inflation
Kantar said food prices were rising fastest in markets such as, fresh lamb and savoury snacks.
It said there was also evidence of some customers stocking up on certain products due to limited availability and increased prices linked to the war in Ukraine.
Last weekend some supermarkets introduced limits on how much cooking oil customers are able to buy, with supplies being hit by the war.
The majority of the UK’s sunflower oil comes from Ukraine and disruption to exports has led to some shortages and an increased demand for alternatives.
Kantar said the cooking oil market grew by 17% in April, with sunflower oil up 27% and vegetable oil up 40%.
