Shoppers pay £275 more at the tills as food prices continue to climb

Shoppers could spend an extra £275 on groceries this year as food prices continue to rise, bringing their total bill to over £5,500, new figures suggest.

Closely-watched data released by market research firm Numerator, formerly Kantar, show grocery inflation reached 5.2 per cent in the four weeks to 13 July, marking their highest level in 18 months. 

It chimes with the latest CPI reading showed an uptick in inflation from 3.4 to 3.6 per cent between May and June, driven primarily by rising fuel and food prices, according to the Office for National Statistics. 

With the average household spending £5,283 on food every year, the latest rise could add £275 to bills if their habits stay the same, Numerator said.  

The figures suggest shoppers are trying to shield themselves from the worst of the price hikes by opting for own-label products, which now outpace brands, growing by 5.6 per cent versus 4.9 per cent.

‘These inflationary worries aren’t just changing what we buy, but how we prepare it too,’ says Fraser McKevitt, head of retail and consumer insight at Worldpanel. 

‘We often see people choosing to make simpler meals when they are trying to save money, and today, almost seven in ten dinner plates include fewer than six components.’

The figures come just a week after figures from the British Retail Consortium (BRC) showed a rebound in retail sales, up 3.1 per cent year-on-year in June. 

While food sales increased 4.1 per cent, it said it had been driven mainly by food inflation, with non-food sales rising just 2.2 per cent. 

Cost-conscious consumers are driving sales at discount retailers like Aldi, where sales increased by 6.3 per cent bringing its market share to 10.9 per cent, just behind Tesco, Sainsbury’s and Asda.

Lidl reached a record high market share at 8.5 per cent having attracted half a million new customers to its stores.

Tesco retains the top spot with a market share of 28.3 per cent as sales grew by 7.1 per cent, while Asda continued to lose ground with a market share of 11.8 per cent.

Cost-cutting might be high on the agenda for some consumers, but the hot weather means some categories are seeing an uptick in sales.

Iced coffee sales were up by 81 per cent, while kombucha drinks doubled their sales over the last four weeks compared to 2024. Sales of ice cream and sorbet soared by 33 per cent.

‘Innovation is absolutely vital to help grocers keep up with new trends and make sure they’re meeting shoppers’ needs as behaviours and priorities shift,’ says McKevitt. ‘The drinks aisle in particular seems to be offering up plenty of inspiration.’

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