Iceland named as supermarket where prices have risen the fastest
The ongoing cost of living crisis has seen grocery price inflation hit a record 16.7% – adding on average a potential £788 to annual shopping bills.
The “staggering” 2.3 percentage point jump in the four weeks to 22 January has exceeded the previous high recorded by analysts Kantar in October and is the highest figure since their records began in 2008.
Food inflation has forced millions of Brits to adjust their shopping habits, including opting for budget brands or changing supermarkets.
All of the UK's major supermarkets have increased their prices over the past year – but Iceland has been named the store where prices have shot up the most.
According to figures from the trolley.co.uk Grocery Price Index (GPI), Iceland saw a 10.1% increase since January 2021.
Percentage price rises of the UK’s major supermarkets between January 2022 and January 2023:
Iceland was also named the supermarket having the highest price rises in the year leading up to November 2022.
The figures come as the Competition and Markets Authority (CMA) said they will scrutinise supermarket unit pricing to ensure retailers are sticking to rules that help consumers accurately compare products.
It said it has started to review unit pricing, which shows how much a particular product costs by weight or volume and helps shoppers choose the best value for money, following “concerns”.
The CMA said consumers shopping for food and other essential products amid the rising cost of living “need confidence that they have the right information to make great choices and are getting fair deals”.
Meanwhile, families face higher mortgage rates after the Bank of England (BoE) increased interest rates from 3.5% to 4% on Thursday.
The BoE also predicted a recession of five consecutive quarters with gross domestic product (GDP) falling by 0.5% this year – a shorter and shallower drop than previously thought.
Household water bills are also set to rise in England Wales by 7.5% in April, working out an average of £31 more on last year's charges.
Figures from Which? found that the cost of living crisis continues to hit the finances of Britons, with some 2.3 million households missing an essential payment last month, up from 1.9 million in December.
The monthly poll of approximately 2,000 people found that six in 10 (59%) made at least one financial adjustment such as cutting back on essentials, selling items, or dipping into savings in the last month to cover essential spending – a significant increase on the 49% last January.
However it is lower than the peak of 65% who made adjustments in September.
The number of households cutting back on essentials such as utility bills, housing costs, groceries, school supplies and medicines has increased by 11 percentage points from three in 10 (27%) last January to four in 10 (38%) this January.