Supermarket inflation in the UK has soared towards 15%, driving up the average bill by £682 per year, according to latest industry figures from Kantar.
While total supermarket sales rose by 5.2% in the 12 weeks to the end of October - the fastest rate of market growth since April 2021 - four-week grocery price inflation jumped by 14.7%, the highest since Kantar began tracking prices in 2008.
Fraser McKevitt, head of retail and consumer insight at Kantar, warned more rises could follow: “Yet again, we have a new record high figure for grocery price inflation and it's too early right now to call the top.”
The report showed rising food prices were taking their strain on household finances with just over a quarter of all households (27%) now saying they’re struggling financially, double last year’s level.
Kantar said: “Nine in ten of this group say higher food and drink prices are a major concern, second only to energy bills.”
Sales of own label sales rose by over 10% while the branded goods market grew far slower at 0.4%.
McKevitt said "the big shift to own label is still accelerating”.
“These items currently represent just under 3% of the market, although retailers have been adding new products in recent months, so it will be interesting to see if this continues,” he added.
Halloween sales were lower while advance spending on Christmas has also taken a hit with sales of Christmas puddings down 32%.
McKevitt suggested there could be a boost from the World Cup with beer sales usually doing well when the football is on.
He pointed out that during the 2018 men’s World Cup, the number of shoppers buying beer to enjoy at home tripled on the day of England’s first match against Tunisia.
Aldi was the fastest growing retailer in the latest period, increasing its sales by 22.7% year on year to now hold a 9.2% market share while Lidl boosted sales by 21.5% to take its market share to a new record high of 7.2%.
Asda again led the traditional ‘Big Four’ with sales growing by 5.3%, maintaining an overall market share of 14.3%, while sales at Sainsbury’s increased by 3.3% with its market share now at 14.9%.
The largest retailer Tesco had a 27.0% share and saw sales grow by 3.1% while Morrisons’ market share is now 9.0%.
Iceland grew slightly ahead of the market, with sales increasing by 5.3%, Co-op's sales rose by 3.3%, but Waitrose’s sales dipped by 1.9%.
Online retailer Ocado held sales flat versus last year and it has a 1.6% share of the market.