# Average annual UK grocery bill highest since at least 2008 -industry data
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-16
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: UK Grocery Inflation Hits Record High in August: Experts
Meta Description: Discover how rising costs are impacting Britons' shopping habits and how retailers are responding to the worst cost of living crisis in decades. Learn more
URL: https://financedigest.com/average-annual-uk-grocery-bill-highest-since-at-least-2008-industry-datahtml

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LONDON (Reuters) – UK grocery inflation hit 11.6% in August, the highest level since at least 2008, adding 533 pounds ($642) to annual bills during the worst cost of living crisis in decades, industry data showed on Tuesday.

Market researcher Kantar said the inflation rate was the highest it has seen since it started tracking supermarket prices in this way 14 years ago.

As prices rise Britons are also increasingly turning to own-label products to drive down the cost of their weekly shop, Kantar said. [Sales of supermarkets’ own lines grew 7.3%, 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 now make up about half of the market, the highest level recorded, Kantar said.

Over the past month we’ve really seen retailers [expand and advertise their own value ranges](https://www.financedigest.com/jewellery-maker-pandora-to-expand-lab-made-diamond-range.html "Jewellery maker Pandora to expand lab-made diamond range") across the store to reflect demand,” said Fraser McKevitt, Kantar’s head of retail and consumer insight. It’s not surprising that we’re [seeing shoppers](https://www.financedigest.com/jd-sports-sees-bills-free-young-shoppers-boosting-profits.html "JD Sports sees bills-free young shoppers boosting profits") make lifestyle changes to deal with the extra demands on their household budgets.

[Prices are rising](https://www.financedigest.com/renault-revenues-rise-30-in-q1-on-higher-sales-and-prices.html "Renault revenues rise 30% in Q1 on higher sales and prices") fastest for products such as butter, milk and poultry, the researcher said.

The [Bank of England said inflation would peak](https://www.financedigest.com/bank-of-england-set-to-hike-to-4-as-rate-peak-looms.html "Bank of England set to hike to 4% as rate peak looms") at 13.3% in October, the highest since 1980. [Soaring inflation has largely been driven by rising energy costs](https://www.financedigest.com/amazon-other-retailers-revamp-free-shipping-as-costs-soar.html "Amazon, other retailers revamp ‘free’ shipping as costs soar"), alongside issues surrounding Britain’s departure from the European Union and supply chain disruptions that worsened with Russia’s invasion of Ukraine.

[Discount chain Lidl remained Britain’s fastest growing](https://www.financedigest.com/discount-dining-clubs-tastecard-and-gourmet-society-grow-their-offering-as-chimichanga-and-spaghetti-house-both-sign-up.html "Discount dining clubs tastecard and Gourmet Society grow their offering as Chimichanga and Spaghetti House both sign up") grocer over the 12 weeks with sales up 17.9%.

Kantar said its [data also showed Britons reacting to heat waves in July and August with sales of mineral water and soft](https://www.financedigest.com/dollar-skids-after-soft-u-s-economic-data-impact-of-opec-cuts-fades.html "Dollar skids after soft U.S. economic data; impact of OPEC+ cuts fades") drinks soaring by 23% and 10% respectively over the past four weeks.

($1 = 0.8297 pounds)

(Reporting by Andrew MacAskill; editing by Grant McCool)


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