Food prices rose by near-record levels in February, new data finds

People are opting for supermarket own labels over branded products

Cost of beef, savoury snacks and cat food rose by 4.3 per cent (Getty Images/iStockphoto)

The cost of food in supermarkets rose to near-record levels in February, according to new data.

Research by data analytics firm Kantar shows that prices of items including savoury snacks, fresh beef and cat food increased by 4.3 per cent last month, with experts predicting that inflation will likely rise as the conflict in Ukraine continues.

Fraser McKevitt, head of retail and consumer insight at Kantar, said that apart from the beginning of the pandemic, when many supermarkets cut promotional deals to maintain stock levels, last month saw “the fastest rate of inflation” since September 2013.

“Added to this, ongoing supply chain pressures and the potential impact of the conflict in Ukraine are set to continue pushing up prices paid by consumers,” he said.

But not all costs rose, with the prices of bacon, beer, lager and spirits decreasing.

While supermarket sales still remain 8.4 per cent above pre-pandemic levels, sales in the 12 weeks to 20 February were down by 3.7 per cent compared to a year ago.

Kantar said this was likely due to the country being in lockdown during the same period in 2021.

Shoppers have responded to increased prices by spending more on supermarket own brand products, data shows.

“Households spent on average £26.07 less at supermarkets in February and own-label sales did better than brands for the first time in three months,” McKevitt said.

The decrease in spending could also be down to the lifting of all remaining Covid-19 restrictions in England this year.

“With the formal end to Covid restrictions in England, more of us are now eating on the go, buying sandwiches, salads and snacks on our lunch breaks, and enjoying meals out with friends and family. That means we’re buying less food and drink to have at home,” McKevitt added.

Discounted supermarkets, including Aldi and Lidl, saw the most footfall in recent weeks, with 1.3 million more customers visting Aldi than they did last year and 1 million more visiting Lidl.

The news comes as Trolley.co.uk’s Grocery Price Index, which tracked more than 24,000 products at UK supermarkets over the past year, found that many essential food items increased in price.

The index monitored supermarkets include Aldi, Asda, Sainsbury’s, Tesco, Morrisons, Co-op, Iceland and Waitrose.

It found that the cost of butter increased by an average of 5.2 per cent across all supermarkets in the year up to February 2022. The cost of milk rose by 6.2 per cent, bread by 4.6 per cent, eggs by 6.8 per cent, and pasta sauces by 3.9 per cent.

Last month, Asda pledged to make its value Smart Price range available across all 581 of its supermarkets after anti-poverty campaigner Jack Monroe highlighted how the cost of inflation was affecting food prices.

The supermarket chain said it would almost double the number of stores that offer its Smart Price range to all 581 of its locations.

The range is made up of 200 products, including items such as a 15 pack of eggs for £1.18, a can of peas for 21p, carrots for 20p and 500g of pasta for 29p.

In January Monroe posted a now-viral Twitter thread giving examples of price increases she had noted at her local supermarket in the past year.

Monroe said figures from the Office for National Statistics – which showed the consumer price index measure for inflation had increased from 5.1 per cent in November to 5.4 per cent in December 2021 – “grossly underestimate the real cost of inflation” and what it means for people in poverty.