Heads up, savvy shoppers! If you frequent Aldi, Lidl, Tesco, Asda, Morrisons, or Sainsbury’s, you might have noticed prices are creeping up yet again. Despite hopes that inflation had hit its peak, recent figures show otherwise, with shop price inflation climbing to 1.5% in January—up from just 0.7% in December. The rise in prices is mainly driven by hefty business energy costs and increased National Insurance.
Food lovers, you’ll be particularly interested to know that food inflation has hit 3.9%, with fresh food prices up by a notable 4.4% compared to last year! With limited supply and a surge in demand, meat, fish, and fruits are the prime culprits. Non-food items are also feeling the pinch, with inflation rising to 0.3% after a decline last month. Items like furniture, flooring, and beauty products are especially affected.
So what’s being done? Retailers are striving to keep prices low amidst fierce competition and squeezed profit margins. However, the rising costs of government policies make it a tough battle. Helen Dickinson from the British Retail Consortium notes that the hopes of having seen the end of price hikes are premature.
But don’t despair just yet! According to Mike Watkins from NIQ, there are still bargains out there. While January might see cautious spending, some non-food shops are running promotions, and many supermarkets are slashing prices on daily essentials to entice customers.
Despite the latest grocery inflation numbers showing a slight ease to 4.3% from November’s 4.7%, it’s time to stay savvy. Keep an eye out for those deals and make your money go further when you’re next at the checkout!