UK food prices as big a concern for consumers as energy bills, Which? finds

The pace at which food prices are increasing continues to decline, however, persistently expensive groceries have become as worrisome as energy bills when it comes to the cost of your weekly shopping, as suggested by recent studies.

The British Retail Consortium recently released data showing a decline in food inflation from 13.4% in July to 11.5% in August. As a result, the overall shop price inflation also decreased from 7.6% to 6.9% during the same period.

According to Helen Dickinson, the CEO of BRC, the decline in trend is considered positive for consumers. She highlighted the slower rise in prices for meat, potatoes, and certain cooking oils.

The British Retail Consortium (BRC) reported that the prices of toiletries and cosmetics had also decreased, according to the data collected during the initial week of August. However, there was a slight increase in the inflation rate for clothing and footwear as stores concluded their summer sales.

Household financial plans in the United Kingdom and various countries globally have been strained due to swift rises in prices for groceries and other products, as a significant portion of the worldwide economy is being disrupted by a surge of heightened inflation.

Prices skyrocketed as supply networks grappled with meeting the high demand following the conclusion of Covid lockdowns. The significant invasion of Ukraine by Russia caused energy prices to surge even higher.

In the United Kingdom, inflation reached its highest point in 41 years, reaching 11.1% in October of last year. Similarly, food prices experienced a peak inflation rate of 19.1% in March of this year, as stated by government statistics. Based on the most recent data from the British Retail Consortium (BRC), it is expected that the overall inflation rate in the UK will decrease for the month of August. However, these figures will only be made available on September 20th.

The significant impact of rising food prices has led to supermarkets being under political pressure to reduce their prices. This comes as a result of public discontent regarding the substantial hikes in food costs.

According to a recent survey conducted by the consumer organization Which?, trust in the supermarket industry has significantly decreased, reaching its lowest point since the horsemeat scandal that occurred ten years ago.

According to a recent report, trust among consumers reached its lowest point in August, reaching levels not seen since February 2013. This decline in trust is comparable to the time when it was discovered that meat products contained undisclosed horse DNA.

A recent study conducted by Which? among a group of 2,000 individuals revealed that less than 50% of participants expressed their confidence in the supermarket industry when it comes to prioritizing their well-being. Surprisingly, almost 20% admitted to having no trust in this sector.

The study also unveiled that the high prices of food have now become a significant source of worry for consumers, similar to their concerns about energy bills. Nearly 90% of the participants expressed their anxiety regarding the expenses associated with purchasing groceries.

According to Katie Alpin, who holds the position of strategic insight head at Which?, the continuous increase in food prices has led to a significant decline in people's trust towards supermarkets. This decline is comparable to the lack of trust experienced during the horsemeat scandal, which occurred around 10 years ago. Alpin further mentioned that the amount of money spent on groceries each week has now become as concerning as energy bills for millions of households.