Which? calls on government to take urgent action to help British shoppers as some grocery costs nearly triple in two years

Which? is urging the government to take strong action to support British households when the competition regulator publishes its findings on the grocery sector, as new research from the consumer champion finds that some food prices have been hiked by up to 175 per cent since 2021.

In recent months supermarkets have been keen to point to a slowdown in year-on-year food inflation, which currently stands at 15.4 per cent according to Which?s own analysis of grocery prices. However, like official inflation figures, this compares prices now with a year ago, when shoppers had already experienced many months of increased costs. 

This month, the consumer champion looked at the true scale of grocery inflation since the cost of living crisis began, finding that between June 2021 and June 2023 supermarket prices went up by 25.8 per cent.

Using its unique supermarket food and drink inflation tracker, Which? analysed over 21,000 food and drink products at eight major supermarkets – Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose over the last two years. 

When Which? looked at the individual products that had risen most over the course of two years, it found some products were up to 175 per cent more expensive in the three months to the end of June 2023 than for the same period two years earlier. The worst case, Mr Kipling Bakewell Cake Slices x6 at Sainsbury’s went from £1 to £2.75 on average – a rise of 175 per cent. Also at Sainsbury’s, British Pork Loin Steaks (4 x 480g) went from £1.94 to £4.28 on average, an increase of 120.6 per cent.

At Tesco, Which? found Mr Kipling Chocolate Slices (6 pack) went from £1 to £2.59 on average over the two year period, an increase of 159 per cent.

At Morrisons, own-label Mozzarella (125g) went from 49p to £1.19 on average, increasing by 142.9 per cent over the two year period. Also at Morrisons, own-brand Free From Gluten Free Oats 1kg went from £1.20 to £2.75 on average, a hike of 129.2 per cent from 2021 to 2023.

At Asda, Which? found own-label Free From Special Flakes (300g) went from 62p to £1.50 on average, an increase of 141.9 per cent between 2021 and 2023.

At Lidl, Chene D'argent French Brie 200g went from 79p to £1.85 on average, an increase of 134.2 per cent between 2021 and 2023.

Food prices have been impacted by the cost of feed, fertiliser and fuel as well as energy and labour but there have also been poor harvests, bird flu and a weaker pound compounding the issue. Which?’s findings show some supermarket products have been disproportionately hit with high inflation, which has made affording the weekly shop increasingly difficult for some people.

Many of the major supermarkets have recently cut costs of everyday essentials such as milk and bread, however Which?’s research shows that despite prices decreasing in recent months, own-label British Semi-Skimmed Milk was last week £1.45 for four pints across almost all the supermarkets, 25 per cent more than it was at the same time two years ago (£1.10). 

When it came to sliced bread, the same was true across supermarket own-brand Medium Sliced Wholemeal Bread (800g), which went up by a third on average over the two-year period (58p to 75p).

For the first time since Which? started its supermarket tracker, inflation on supermarket own label budget lines started to show signs of slowing down year on year, going from 26.6 per cent last month to 26.2 per cent this month. In comparison, regular own brand goods (17.4%), own label premium (12.8%) and branded goods (12.7%) were comparatively less affected by inflation year on year.

However, when Which? looked at the level of inflation over two years, it found that budget line items had gone up 37.1 per cent on average. While these products are still usually the cheapest available, the scale of these price hikes shows how the poorest in society are being hit hardest by increasing prices.

The findings come as the Competition and Markets Authority (CMA) is set to publish a review to determine whether prices are clearly and fairly displayed at the supermarket and if the grocery sector is competitive enough. If competition issues are found, the CMA should be ready to take appropriate action. The Chancellor should also immediately update on his progress to agree potential measures with industry to ease the pressure on consumers, following his meeting with food manufacturers on 23 May. 

Which? has been campaigning for supermarkets to do more to help customers to cope with rising food prices, including stocking a range of essential budget line items in convenience stores, something Morrisons recently committed to. Which? is calling on Tesco, Sainsbury’s, Asda and other supermarkets to follow suit.

Which? has also repeatedly exposed inconsistent and confusing supermarket pricing which could make it difficult for shoppers to easily work out which products offer the best value - a necessity for households on tight budgets during a time of economic crisis. The consumer champion is calling on supermarkets to bring in clearer unit pricing, especially where it is currently missing, such as on promotions and loyalty card offers. The government has said it stands ready to update pricing rules and guidance following the CMA’s review of unit pricing.

Sue Davies, Which? Head of Food Policy, said: 

“Our research exposes the shocking true scale of food price inflation at supermarkets since the cost of living crisis began and shows why recent headline-grabbing price cuts of a few pence on some products are encouraging, but simply won’t be enough to help people struggling to put food on the table.

“It’s crucial that the government responds quickly to the CMA’s grocery pricing review by updating the rules so they are fit for purpose, as we’ve found pricing practices, both online and instore, to be inconsistent, confusing and sometimes missing altogether. But supermarkets shouldn’t wait to improve how they display prices, particularly where unit pricing is currently not provided on loyalty card offers, such as Tesco’s Clubcard. 

“All supermarkets should follow the example set by Morrisons and commit to stocking essential budget ranges that enable a healthy diet in smaller convenience stores, particularly in areas where people are most in need.”

ENDS

Notes to editors: 

Which? Affordable Food For All Campaign

The consumer champion’s Affordable Food For All campaign calls on supermarkets to do more to ensure own-brand budget line items are widely available throughout all branches – including in smaller ‘convenience’ stores. They should also make pricing and offers more transparent.

Almost 110,000 supporters have signed Which?’s petition so far calling on the supermarkets to take action.

Alongside the University of Leeds Consumer Data Research Centre, Which? has developed the Priority Places For Food Index which shows where in the UK people are the most vulnerable to food insecurity.

Which? supermarket food and drink inflation tracker 

As part of its Affordable Food For All campaign, Which? launched a new monthly tracker in December which tracks tens of thousands of products across eight major supermarkets. The tracker shows rates of inflation overall as well as by supermarket, product category and range.

Which? will be publishing this data each month in order to showcase how inflation is really hitting customers and putting pressure on the supermarkets to do a better job of supporting customers to keep food on the table during the worst cost of living crisis in over 40 years.

Inflation is a measure of how quickly prices are rising or falling and not of absolute price. The supermarkets with the highest inflation may also be the cheapest.

Which?’s tracker looks at 20 popular categories of food and drink at eight supermarkets — Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose. It compares average prices across the same three-month and one-month periods year-on-year, including discounts but not multibuys or loyalty card offers. Figures are then weighted based on supermarket market share and the sales volume of each product category.

To see how these high levels of inflation on value ranges are affecting specific products on supermarket shelves Which? also looks at a three-month average – in this case from April–June 2023 – and compares it year on year. This time around, Which? has also compared it over two years.

While some minor price variation may exist due to different prices at different stores across the country and sampling techniques, Which? is confident this is unlikely to impact overall averages and inflation figures. Every month, Which? offers supermarkets the opportunity to comment on their own products with the highest inflation.