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Shoppers face £454 jump in annual grocery bills as food inflation soars

Grocery prices surged by 9.9% over the past month, figures show (Aaron Chown/PA)
Grocery prices surged by 9.9% over the past month, figures show (Aaron Chown/PA)

Shoppers are set to see their grocery bills for the year leap by £454 after food and drink inflation hit the second-highest level on record.

Retail research firm Kantar revealed that grocery price inflation leapt to 9.9% over the four weeks to July 10, rising sharply from 8.3% in the previous month.

Researchers said they saw the fastest increases in prices for products such as dog food, butter and milk.

Supply chain issues and labour pressures have added to costs in food production, which are now being fed back to shoppers.

Fraser McKevitt, head of retail and consumer insight at Kantar, said he expects the overall record for grocery inflation to be surpassed “come August”.

He added: “All this means that people will be feeling the pinch during our first restriction-free summer since 2019.

“Taking a barbecue as an example, buying burgers, halloumi and coleslaw for some al fresco dining would cost you 13%, 17% and 14% more than it would have this time last year.”

The researcher also said that supermarkets have seen a 14% jump in ice cream sales and a 66% rise for sun care products over the month as Britons experienced soaring temperatures.

It came as total supermarket sales increased by 0.1% over the 12 weeks to July 10, the first time the market has been in growth since April last year.

German discounters Aldi and Lidl continued to see rapid sales growth – with increases of 11.3% and 13.9% respectively – as shoppers turned to them for cheaper prices amid pressure on their household budgets.

Tesco also remained the only one of the big four grocers, which also include Sainsbury’s, Asda and Morrisons, to report growth for the quarter.

The weakest performer was Morrisons, which witnessed a 6.7% drop for the period, according to the figures.