The squeeze on household finances is seeing some Asda customers setting themselves £30 limits on their spending. The supermarket's chairman said the change in behaviour is being seen at checkouts and at petrol stations.
Lord Stuart Rose was speaking to the BBC about the cost of living crisis and the way supermarket shoppers are moving to budget ranges as they fear for the financial future. His comments come ahead of the latest rise in inflation to 9.1% in May
Describing a "massive change" in customers' behaviour, he said people are worried about spending. He called on the Government to do more to help low income households.
He told the BBC: "People are trading back. They are worried about spending.
"They've got a limit that they've set out, too. They say £30 is one limit... and if they get to more than £30 then that's it, stop. It's the same with petrol."
He added that many people won't remember the inflation of the 1970s and the current rise in prices has come as a shock to many. He added: "I'm of the generation that remembers what it was like last time. And once [inflation] gets hold, it's quite pernicious."
Britons are set to see their annual grocery bills jump by £380 this year as food price inflation hits a fresh 13-year high, according to new figures. The latest data from Kantar has revealed that grocery price inflation jumped to 8.3% over the four weeks to June 12 – up from 7% in May and its highest level since April 2009.
The soaring increases in the cost of food and groceries means the average annual shopping bill is now predicted to increase by £380 to £4,960 in 2022 – up by more than another £100 since April alone, Kantar said. Shoppers are increasingly swapping branded items for cheaper own-label products as they look to manage their budgets, according to the research.
The average price of a litre of petrol at UK forecourts reached a new high of 189.3p on Tuesday, according to data firm Experian. The average price of diesel was 197.1p per litre.
The rate of inflation rose again in May, remaining at 40-year highs and deepening the squeeze felt by households across the UK, the Office for National Statistics (ONS) has said.
The rate of consumer prices index (CPI) inflation rose from 9% in April to 9.1% in May, the statisticians said. The increase matches what analysts had expected and pushes the measure to its highest since early 1982, according to ONS estimates.
