More pain for British consumers as grocery prices rise

With inflationary pressures mounting in the British economy, one Bank of England policymaker on Saturday told households to get ready for early interest rate rises.

British grocery prices increased 1.7% in the four weeks to October 3 from a year earlier, market researcher Kantar said, adding to pressure on UK households already facing soaring energy bills.

With inflationary pressures mounting in the British economy, one Bank of England policymaker on Saturday told households to get ready for early interest rate rises.

A survey published by pollsters YouGov and consultancy CEBR meanwhile said consumer confidence has fallen to a five-month low. Kantar said prices are rising fastest in markets such as savoury snacks, cat food and crisps while falling in fresh bacon and vegetables.

"In real world terms, the average household had to spend an extra £5.94 on groceries last month than they did at the same time last year," said Fraser McKevitt, head of retail and consumer insight at Kantar.

"The typical household spends £4,726 per year in the supermarkets, so any future price rises will quickly add up." Kantar first reported grocery prices starting to rise again in August. They rose 1.3% in its September report. 

Kantar said UK grocery sales fell 1.2% year-on-year in the 12 weeks to October 3, but were higher than pre-pandemic times - up 8.1% compared with the same period in 2019.

Kantar publishes Irish grocery figures later this week. 

Reuters