Average UK food bill rises by £571 a year as grocery inflation hits record

theguardian.com:

Supermarket inflation reached a new record of 12.4% last month, adding £571 to annual household bills, with milk and butter seeing some of the biggest price rises.

The market research firm Kantar said the typical annual grocery bill has risen to £5,181 from £4,610. Milk, butter and dog food are among the items affected by the biggest increases, going up in price by 31%, 25% and 29% respectively in the four weeks to 4 September compared with a year earlier.

Sales of the very cheapest value own-label products were up by a third compared with a year ago, as customers try to cope with surging living costs. Overall spending on all retailer own-label lines was £393m higher during the four-week period, pushing own-label’s share of the market to 51.1%.

“It seems there’s no end in sight to grocery inflation as the rate at which food and drink prices are increasing continues to accelerate, said Fraser McKevitt, head of retail and consumer insight at Kantar.

“In what is a fiercely competitive sector, supermarkets are reacting to make sure they’re seen to acknowledge the challenges consumers are facing and offer best value, in particular by expanding their own-label ranges. Their efforts seem to be well received by consumers with sales of the very cheapest value own-label products up by 33% this period versus a year ago and nearly one in four baskets containing one of these lines.”

An analysis from the thinktank the Resolution Foundation found that Liz Truss’s plans for an energy price freeze and sweeping tax cuts will give Britain’s richest households twice as much financial support with living costs as the poorest households.

The discount grocers are benefiting as shoppers try to budget. Aldi’s sales rose by 18.7%, which gave it a 9.3%