# Average annual UK food bill set to rise 454 pounds as inflation soars
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-07-19
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Grocery Inflation Hits 9.9% - A Worsening Cost of Living
Meta Description: Get the latest insights on UK grocery inflation hitting 9.9% in July 2022. Discover how rising prices are impacting Britons&#039; annual bills and supermarket
URL: https://financedigest.com/average-annual-uk-food-bill-set-to-rise-454-pounds-as-inflation-soarshtml

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By James Davey

LONDON (Reuters) – UK grocery inflation hit 9.9% in the four weeks to July 10, adding 454 pounds ($543.7) to Britons’ annual bills amid a worsening cost of living crisis, industry data showed on Tuesday.

Market researcher Kantar said the inflation rate was the second highest it has seen since it started tracking supermarket prices in this way in 2008.

We’re likely to surpass the previous high come August,” warned Fraser McKevitt, Kantar’s [head of retail and consumer](https://www.financedigest.com/analysis-consumer-boom-nearly-over-as-central-europe-heads-into-decade-of-peril.html "Analysis-Consumer boom nearly over as Central Europe heads into “decade of peril”") insight.

The researcher said [prices are rising](https://www.financedigest.com/oil-prices-rise-on-u-s-drawdown-chinese-fears-weigh.html "Oil prices rise on U.S. drawdown, Chinese fears weigh") fastest in markets such as dog food, butter and milk.

Food [inflation could reach 15% this summer and 20% early next](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook") year according to some forecasts.

Kantar said sales on a value basis rose 0.1% at [market leader](https://www.financedigest.com/impact-com-named-a-market-leader-in-research-in-actions-partner-management-automation-report-and-in-g2-winter-reports.html "impact.com Named a Market Leader in Research in Action’s Partner Management Automation Report and in G2 Winter Reports") Tesco over the 12 weeks to July 10, but fell at Sainsbury’s, Asda and Morrisons as shoppers switched to German-owned discounters Aldi and Lidl.

Lidl was [Britain’s fastest growing grocer over the 12 weeks with sales](https://www.financedigest.com/britains-tesco-increases-dominance-with-12-week-sales-rise-nielseniq.html "Britain’s Tesco increases dominance with 12-week sales rise – NielsenIQ") up 13.9%, while Aldi’s were up 11.3%.

Both [hit record](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc.html "UK shop price inflation hits record 8% in January: BRC") market shares, with Lidl at 7.0% and Aldi at 9.1% – just 0.3% below Morrisons, Britain’s No. 4 grocer.

Over 67% of people in Britain shopped in either an Aldi or a Lidl in the past 12 weeks, with 1.4 [million additional households](https://www.financedigest.com/revealed-1-45-million-tonnes-of-e-waste-is-produced-by-households-businesses-per-annum.html "Revealed: 1.45 million tonnes of e-waste is produced by households & businesses per annum") visiting at least one of the discounters in the latest three months compared with last year,” said McKevitt.

Kantar said as prices rise [Britons are also increasingly turning to own-label products](https://www.financedigest.com/over-half-of-britons-say-loyalty-cards-encourage-them-to-buy-a-product-niq.html "Over half of Britons say loyalty cards encourage them to buy a product – NIQ") to drive down the cost of their weekly shop. [Sales of supermarkets’ own lines grew 4.1% over the 12 weeks, while sales of branded](https://www.financedigest.com/geelys-ev-brand-zeekr-aims-to-double-sales-in-2023-expand-in-europe.html "Geely’s EV brand Zeekr aims to double sales in 2023, expand in Europe") items fell 2.4%.

Facing the toughest economic conditions in decades, Britain’s [food retailers are monitoring each others’ prices](https://www.financedigest.com/france-leans-on-retailers-to-help-consumers-cope-with-food-prices.html "France leans on retailers to help consumers cope with food prices") more than ever before.

Kantar said its [data also showed Britons preparing for the current](https://www.financedigest.com/cbd-gummies-market-current-scenario-and-industry-growth-forecast-with-major-key-players-data-2030.html "CBD Gummies Market| Current Scenario and Industry Growth Forecast with Major Key Players data 2030") heat wave, with sales of ice cream and suncare products soaring by 14% and 66% respectively over the past four weeks.

It said total UK supermarket [sales rose 0.1% over the 12-week period](https://www.financedigest.com/uks-wetherspoon-posts-13-1-rise-in-sales-for-25-wk-period.html "UK’s Wetherspoon posts 13.1% rise in sales for 25-wk period") – the first time the market has registered growth since April 2021.

UK grocers’ market [share and sales](https://www.financedigest.com/monte-dei-paschi-to-have-underwriting-consortium-for-share-sale-by-tuesday-source.html "Monte dei Paschi to have underwriting consortium for share sale by Tuesday – source") growth (%)

Market [share Market share % change](https://www.financedigest.com/bayer-shares-gain-on-prospect-of-second-activist-pushing-for-change.html "Bayer shares gain on prospect of second activist pushing for change") in

12 wks to 12 wks to sales

July 10 2022 July 11 2021 (yr-on-yr)

Tesco 27.1 27.1 0.1

Sainsbury’s 14.9 15.2 -2.2

Asda 13.7 14.0 -2.3

Morrisons 9.4 10.1 -6.7

Aldi 9.1 8.2 11.3

Lidl 7.0 6.1 13.9

Co-operative 6.3 6.5 -2.0

Waitrose 4.6 5.0 -6.3

Iceland 2.3 2.3 -0.2

Ocado 1.8 1.8 0.7

Source: Kantar

($1 = 0.8350 pounds)

(Reporting by James Davey; Editing by Sandra Maler)


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