Inflation: McDonald’s hikes price of five items as Waitrose reduces ‘essentials’

Cost of some burgers to go up by 20 per cent

McDonald’s is set to hike the price of five items from Wednesday as inflation eats into the fast food chain’s running costs.

The cost of its mayo chicken and double cheeseburgers will go up by 20 per cent, from 99p to £1.19 and £2.49 £2.69 respectively.

The bacon mayo chicken will also go up from £1.59 to £1.79 - a hike of 12.6 per cent. Medium-size soft drinks will also rise by 7.1 per cent from £1.39 to £1.49.

McDonald’s, which has more than 1,00 restaurants across the UK, hopes to soften the blow of the price hikes by bundling some burgers with sides and a drink in a saver meal.

A cheeseburger or mayo chicken with a side and drink will be £3.99, while a double cheeseburger with side and drink is £4.79.

The bundle meal deal is to be trialled at about 120 restaurants in South East England until 9 May.

If successful, the Saver Meals will be rolled out across the country. Price may vary across restaurants as some are franchisees.

Last month, the company’s global same-store sales increased 12.6 per cent.

McDonald’s, whose slogan is I’m Lovin’ It, said families continued to appreciate that it is an affordable option for a meal out.

A spokesperson said: “We are committed to offering great tasting food at affordable prices. However, like many businesses, the impact of the increase in food and energy costs continues to affect our company and our franchisees."

"We carefully review and adjust pricing to offer great value and quality.

"At the same time, we continue to work hard on how we can provide our customer’s value where it matters most, with personalised offers and rewards through the MyMcDonald’s Rewards scheme."

McDonald’s has signed a legal agreement with the equality watchdog amid concerns over how it has handled sexual harassment complaints made by UK staff (Jonathan Brady/PA) (PA Archive)

Waitrose, meanwhile, has announced what it said amounts to £100mn in reductions across its ‘essentials’ range.

The high-end supermarket said items such as ham, cheese and sausages will see reductions.

Competitors Aldi and Lidl have recently carried out similar moves to help people whose budgets have been reduced by soaring inflation, which is coming down slightly but still at sky-high levels.

The Office for National Statistics said on Wednesday that inflation, or rising prices, was at 10.1 per cent in January - down from 10.5 per cent in December.

A general view of a Little Waitrose store in Knightsbridge, central London (Nick Ansell/PA) (PA Archive)

Waitrose said it would reduce the prices of nearly a third of its own brand essentials range - which will see cuts of 14 per cent on average.

Waitrose’s James Bailey said: “We understand that getting value for money has never been more important for everyone. So we’re cutting the prices of hundreds of everyday favourites from carrots to butter.”

“We won’t compromise our commitments to delivering excellent customer service, exceptional quality and the unique ranges we know our customers love.”

Although inflation is falling, price rises remain at sky-high levels, meaning Britons will continue to feel the pinch on their finances.

January’s fall was driven by the price of air and coach travel dropping back following a rise over the Christmas period.

Petrol prices continue to fall and there was a dip in restaurant, cafe and takeaway prices.