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Supermarket prices are rising as the cost of a weekly shop gets more expensive

Published: 11/01/2017 by Comments

Supermarket prices are rising as the cost of a weekly shop gets more expensive

After over two years of declining prices, it is now more expensive to shop in a supermarket.

Premier Foods, the owner of brands such as Mr Kipling and Bisto recently announced that it has been discussing price increases with retailers.

Kantar Worldpanel released figures reflecting grocery inflation halted at 0.2% for 12 weeks up until 1 January.

Grocery deflation was steady between September 2014 to December 2016, recent price increases has brought this period to an end.

Premier Foods, the owner of Mr Kiplin and Bisto states that “price increases will reflect the current state of the market which includes looking at things such as currency changes.”

Inflation is on the increase, and grocery prices are simply one of the areas to be affected. There will also be an increase in the cost of clothes and cars.
After Brexit led to a decline in the value of the pound, retailers have warned that prices would eventually rise because of the increase in the cost of importing.
The Kantar report also revealed that supermarket sales were up by 1.8% since June 2014.

Head of retail and consumer insight for Kantar Fraser McKevitt stated: “The return of inflation has been anticipated for some time, now that it is here there will be a deceleration in the growth of the market. Both retailers and consumers will be trying to find ways to reduce the prices of their weekly shopping.”
He made reference to the reduction in price promotions, which was at an all time low since Christmas 2009. Retailers have started to put a cap on their offers and discounts.

Kantar have said that the prices of products such as butter and fish were on the increase, but products such as bacon and eggs were falling.

Profit margins are still increasing for supermarkets such as Tesco, Morrison’s and Sainsbury’s.

Large supermarket chains have been in a pricing battle ever since the rise of discount stores such as Lidl and Aldi.

According to reports, December 23 was the busiest shopping day of the year with over half of the population visiting a grocery store.

Figures also show that last minute and late Christmas purchases boosted in store sales.

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