Over one third (38%) of shoppers are buying ‘yellow sticker’ food nearing the end of its shelf life in a bid to save money during the cost of living crisis.
According to Barclays, 89% of shoppers are concerned about the impact of rising prices as food inflation hit a new record high last month. Food food prices rose by 15.7% compared to last year, prompting shoppers to downshift from premium ranges to standard or value ranges and switch from fresh food to frozen.
Supermarkets have faced heavy criticism over the last few months as the cost of food has skyrocketed. According to Grant Fitzner, chief economist for the Office of National Statistics (ONS), food prices overall are on the way down over the next few months but the drop had not yet reached supermarket shelves.
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Food inflation reached a record high of 19.2% in March, the highest level seen in 45 years, and supermarkets were accused of profiteering from the crisis by Liberal Democrats leader Ed Davey, who called on the Competition and Markets Authority (CMA) to probe into whether any profiteering was taking place in supermarkets. “We need to bring soaring food prices back under control and offer relief to families. That means cracking down on profiteering by food multinationals and the big supermarkets so customers get a fair deal,” he said.
Experts are predicting that with the stiff competition of supermarket pricing in the UK, consumers may see costs drop sooner rather than later. Some supermarkets have cut the costs of basic food items over the last month, with Tesco, Sainsbury's Lidl, and Aldi all cutting the price of their bread and butter this week, shortly after after the price of milk was also slashed at all major supermarkets.
Prime Minister Rishi Sunak is set to hold crisis talks with supermarket bosses and farmers later this month, according to The Grocer, and is likely to focus on the relationship between farmers and the UK’s leading supermarkets
Several factors are to blame for the rapid rise in food prices including the war in Ukraine, Brexit and labour shortages. But although both Tesco and Sainsbury’s reported a drop in profits in recent weeks, experts say more could be done to help shoppers struggling with rising prices.
Prior to the cost of living crisis, the cost of a food shop dropped significantly as supermarkets competed to offer the lowest prices to temp people away from discounters such as Aldi and Lidl. But since last year, many have turned to their loyalty programmes to lock in customers by offering cheaper prices for members.
Last month, the Co-op supermarket became the latest to introduce two-tier pricing, with reductions for holders of its Co-Op Membership scheme, just days after Sainsbury's refreshed its Nectar Prices scheme to bring it in line with Tesco's Clubcard scheme.
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Chief executive of the British Retail Consortium (BRC) Helen Dickinson told the Grocery Gazette: “We should start to see food prices come down in the coming months as the cut to wholesale prices and other cost pressures filter through. In the meantime, retailers remain committed to helping their customers and keeping prices as low as possible.”
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