The larger supermarkets have been struggling with the rise of their cut-price rivals and that trend continued in the most recent period
UK grocery inflation rose by 2.3 per cent in the 12 weeks to 26 March, costing the average household £21.31 more than during the same period last year, industry data showed on Tuesday.
The figures from Kantar Worldpanel, showed that falling prices for things like crisps, bacon, chocolate and fresh poultry were only partially able to offset rises in the cost of butter, fish, tea and skincare products.
“We expect inflation to continue to accelerate, and as a result we’re likely to see consumers looking for cheaper alternatives,” Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said.
He added that cheaper own-label supermarket groceries would likely be the beneficiaries of this.
The larger supermarkets have for several years been struggling with the rise of their cut-price rivals and that trend continued in the most recent period with both Lidl and Aldi reaching new record high market shares.
The German discounters now account collectively for 11.7 per cent of the UK grocery market, according to the to the latest figures from Kantar.
Lidl grew sales by 15 per cent during the period, becoming the fastest growing retailer and increasing its share of the market by half a percentage points to 4.9 per cent. Aldi grew sales by 14.3 per cent, taking its shares to 6.8 per cent.
An ongoing programme of store openings by both retailers meant that the two together attracted an additional 1.1 million customers over the past 12 weeks, according to Kantar.
How Brexit affected Britain's favourite foods from Weetabix to Marmite
Weetabix
Chief executive of Weetabix Giles Turrell has warned that the price of one of the nation’s favourite breakfast are likely to go up this year by low-single digits in percentage terms. ReutersNescafé
The cost of a 100g jar of Nescafé Original at Sainsbury’s has gone up 40p from £2.75 to £3.15 – a 14 per cent rise—since the Brexit vote. PAFreddo
When contacted by The Independent this month, a Mondelez spokesperson declined to discuss specific brands but confirmed that there would be "selective" price increases across its range despite the American multi-national confectionery giant reporting profits of $548m (£450m) in its last three-month financial period. Mondelez, which bought Cadbury in 2010, said rising commodity costs combined with the slump in the value of the pound had made its products more expensive to make. CadburyMr Kipling cakes
Premier Foods, the maker of Mr Kipling and Bisto gravy, said that it was considering price rises on a case-by-case basis ReutersWalkers Crisps
Walkers, owned by US giant PepsiCo, said "the weakened value of the pound" is affecting the import cost of some of its materials. A Walkers spokesman told the Press Association that a 32g standard bag was set to increase from 50p to 55p, and the larger grab bag from 75p to 80p. GettyMarmite
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