British Food Price Inflation Hits 15 Month High as Shopping Costs Soar

Food prices across British supermarkets have surged at their fastest rate in more than a year, intensifying pressure on household budgets nationwide. Fresh data from Kantar reveals grocery prices climbed 4.7 per cent in the four weeks to 15 June compared to the same period last year, marking the highest increase since February 2024.

The acceleration from the previous month’s 4.1 per cent rise has sparked concerns for vulnerable households, particularly those on lower incomes who allocate a larger proportion of their monthly spending to essential items. The surge mirrors challenges faced during the 2022-2023 cost-of-living crisis when inflation peaked at 11.1 per cent.

Kitchen staples are driving the current inflationary trend, with significant price hikes observed in chocolate, butter, and fresh meat. Consumers are actively adapting their shopping behaviours, with a notable shift towards supermarket own-label products, which saw growth of 4.2 per cent, outpacing branded alternatives.

Despite rising costs, British households made 490 million supermarket visits over the past month, averaging nearly 17 trips per family. This represents the highest shopping frequency since March 2020, during the early stages of the Covid-19 pandemic.

Market leader Tesco continues to dominate the grocery sector, commanding 28.1 per cent of supermarket spending, followed by Sainsbury’s at 15.2 per cent. German discounters Aldi and Lidl have strengthened their positions, securing 10.9 per cent and 8.1 per cent market share respectively.

The Bank of England maintains its projection that inflation will hover around 3.5 per cent for the remainder of the year, with two additional interest rate cuts anticipated before year-end. These persistent inflationary pressures, combined with potential fuel price increases due to Middle Eastern tensions, suggest continued challenges for British consumers in the months ahead.