The prices of food and everyday products bought in supermarkets have risen by more than 17% in the last four weeks in the UK, a record, and energy poverty is increasing there. The rise in food prices reflected in a study by the Kantar company published this Tuesday is much higher than the general rise in prices in the country, which currently exceeds 10%.
In the midst of a cost-of-living crisis, this rise in the price of basic foods “has a huge impact on people’s lives,” Kantar says. A quarter of Britons say they are experiencing financial difficulties, up from a fifth the year before, according to this study. For supermarkets, the battle “to offer the best added value to the consumer continues in a very competitive sector where traditional distributors try to protect their market share against low-cost brands,” continues Kantar.
“Very worrying figures”
Private labels have been promoted and “buyers have favored” them over big brands since February last year, Kantar says. “These figures are very worrying,” says the consumer association Which? in a press release. Numerous studies show that households are already skipping meals, reducing their food purchases or rationing in an attempt to stay afloat financially.
Which? notes that “trust in supermarkets is falling, and many people believe they are prioritizing profits over their struggling customers during this crisis.” Distributors such as online platform Ocado are “in the eye of the storm,” as Hargreaves-Lansdown analyst Sophie Lund-Yates observes.
The British company saw its losses double in one year and its sales stagnate despite the fact that the number of its customers increased, which reduced the amount of their orders. The title collapsed on the stock market on Tuesday after this announcement.
13.4% of UK households in energy poverty
Double-digit inflation in the UK is being driven not only by food prices, but also by energy bills. These should continue to rise in April due to a reduction in government aid, despite a reduction decided by the regulator in the maximum that can be billed to households. Statistics from the Department of Energy published on Tuesday show that 13.4% of British households, or 3.26 million, were in energy poverty in 2022. This is more than a year earlier (13.1%). and this figure should continue to rise to 14.4% this year according to the ministry.
The British energy mix is especially dependent on gas, whose prices have skyrocketed after the war in Ukraine. They have since declined, but this decline is slow to be reflected in the costs of businesses and individuals, especially as carrier costs are rising in the process. The shortage of workers, the repeated strikes to demand better wages, the supply problems after Brexit and the pandemic also contribute to keeping inflation high in the country.
The International Monetary Fund (IMF) expects the UK to be the only major economy to suffer a recession in 2023, worse than the eurozone or the US, but also Russia, which has been hit with numerous international sanctions due to its invasion. from Ukraine
Source: BFM TV
