Food prices are rising at the fastest pace ever, with prices for fresh fruit and vegetables rising to record levels – but what’s the best way to handle food price increases?
According to experts from the British Retail Consortium, the total cost of food rose 15 percent in March compared to February, while fresh food prices rose 17 percent – a new monthly record.
Rising food prices are just one of the rising bills facing troubled UK households during the cost of living crisis, with many trying to cut costs with their supermarket.
BRC CEO Helen Dickinson said: “Retail price inflation has yet to peak. Fruit and vegetable prices also rose because poor harvests in Europe and North Africa worsened availability and imports became more expensive due to the weaker pound.’
There are several ways to save money on food, ranging from the familiar to the mysterious. We explain how to spend less on your groceries in the supermarket, with tips that are worthwhile.
Gone bananas: the increases in food prices are strongest for fresh fruit and vegetables
Choose cheaper supermarkets and own brand items
Choosing low-cost supermarkets such as Aldi and Lidl, as well as selecting own brands and discount ranges, can help shoppers save money on their groceries.
The latest figures show that many savvy shoppers are already doing this, visiting several supermarkets a week to find bargains and save money.
Retail analytics firm Kantar said people were shopping on average more than four times a week in March — the highest frequency since the start of the pandemic, excluding Christmas time. The analysts also said footfall in every supermarket had increased.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: ‘The supermarkets are also tackling food price inflation, fighting it out to demonstrate value and get customers through their doors.
“This is a highly competitive industry and if people don’t like the prices in one store, they’ll go elsewhere, with consumers visiting an average of three or more of the top ten retailers in any given month.”
In response, supermarkets are competing on price more than ever before – and even the high-end supermarket Waitrose is launching value-based advertising campaigns.
The two cheapest supermarkets are Aldi and Lidl, whose discounter business models are based on lower prices than their mainstream rivals.
However, many shoppers find it difficult to use Aldi and Lidl as direct replacements for larger rivals such as the traditional ‘big four’ – Tesco, Sainsbury’s, Asda and Morrisons.
The price is right: Aldi and Lidl have gained market share as UK shoppers try to lower the cost of their grocery bills
That’s because Aldi and Lidl have smaller ranges, which can be a problem if a customer has a varied list of items to buy. Instead, many consumers now buy as much as possible from cheaper supermarkets and then go to a more expensive one to pick up the rest.
Even though Aldi and Lidl are by far the cheapest supermarkets, their prices are rising faster than the big four.
Overall annual food price inflation was 21.1 percent at Lidl and 20.8 percent at Aldi in December 2022. Which? recently found.
Asda saw the third highest price increase over the period at 15.4 per cent, followed by Waitrose (14.5 per cent), Sainsbury’s (13.75 per cent), Tesco (13.1 per cent), Morrisons (12.9 per cent) and Ocado (10.5 percent). cents).
Market share: A chart showing the market share of UK supermarkets in the 12 weeks to 25 December
Myron Jobson, senior personal finance analyst at investment platform Interactive Investor, said: “There is no escaping food inflation because part of what fuels it is price jumps in everyday staples, such as milk, pasta, bread and eggs.
Rising prices are changing the way we shop. Baskets are getting smaller and more of us are dropping premium brands for cheaper alternatives. Persistent food inflation has also reduced shoppers’ appetite for nice-to-have goods.’
Look for discounted items
Supermarkets give a discount on food that is approaching its best before date or that is not ‘perfect’, for example because the packaging is slightly damaged.
Every supermarket has a point in the day when these foods are routinely marked down, and if you can tailor this to your shopping spree, you can save quite a bit.
Supermarkets, including Waitrose, for example, can offer significant discounts on food just before the holidays.
Which? said: ‘Many supermarkets offer deep discounts on perishable items in the early evening as the sell-by date approaches, so it can pay to shop at this time.
“However, you have to be flexible in what you buy and, of course, make sure you use (or freeze) the items before they go bad.”
But also remember that buying something you don’t need just because it’s on sale won’t help you save money.
Avoid smaller convenience stores
The past 30 years have seen an explosion in smaller neighborhood supermarkets, often in central cities.
While most of the larger supermarkets are located outside built-up areas, the supermarkets realized that they had missed a trick by not also opening smaller branches in more densely populated areas.
But that convenience has a price, and that cost is an average 10 percent price increase. That’s how much extra it will cost you to shop in smaller supermarkets, according to analysts at ESA Retail.
So while it may seem convenient to go to a convenience store, remember that it can add up in the longer run.
Sign up for loyalty programs
Supermarket loyalty programs such as Tesco Clubcard and Sainsbury’s Nectar points offer points that can be redeemed for cheaper groceries.
More than nine in 10 consumers now use at least one of these schemes, Kantar found.
For example, Tesco Clubcard users get one point for every £1 spent in-store, or one point for every £2 spent on fuel.
Sainsbury’s Nectar Program customers collect one point for every £1 spent, and each point is worth 0.5p when purchasing items from the shop.
Shoppers with the Lidl Plus app get weekly coupons, as well as vouchers when spending £50, £100, £150 or £250 per month.
The Asda Rewards loyalty program encourages customers to purchase certain items. In return, consumers receive money in a Rewards wallet, which can be converted into in-store vouchers.
The Morrisons loyalty program, My Morrisons, works a little differently. Customers who download the My Morrisons app on their smartphone receive personalized coupons depending on what they buy.
When will the high food prices be over?
The Bank of England thinks inflation will fall this year, starting in early summer.
“We expect to see a sharp fall in inflation in the course of this year, which is likely to start in a few months,” bank governor Andrew Bailey told the London School of Economics this week.
That means food prices could start falling, as well as other expenses such as high energy bills.
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