Inflation has added £133 to average household’s annual shopping bill
Rising inflation has led to rising shopping bills. And that extra cost is likely to be more than the cost of EU membership to a worker on an average UK salary.
A new report by Kantar Worldpanel has good news for UK supermarket sales, which has seen its strongest growth increase since March 2012. However, the bad news for consumers is that rising inflation will be a key factor in sales growth meaning their shopping is costing them more.
In comments about the report, Kantar Worldpanel’s head of retail and consumer insight, Fraser McKevitt, said the increase in sales growth is partly due to “a continuing increase in like-for-like grocery inflation, which is running at 3.2%”. An extreme example of how inflation has impacted the price of groceries is butter, which he said “is almost 20% more expensive than last year”.
McKevitt added “at this rate, that’s an extra £133 on the average household’s annual shopping bill, or the equivalent of seven additional shopping trips a year”.
Earlier this year, we estimated that the cost of EU membership for a Brit on an average UK salary for the 2015-16 financial year was £64.59. So that extra £133 on the average household annual shopping bill is already more than the cost of EU membership for two people on an average UK salary.
Meanwhile, a retail sales report for May from the Office for National Statistics (ONS) showed sales fell with non-food stores particularly hit. With inflation continuing to rise and real pay growth falling, consumers have less money to spend. Both the Kantar Worldpanel report and ONS report suggests consumers are focussing their money on essentials such as food.