Valerie Elliott, Consumer Editor
Over 900 restaurants nationwide. Find your nearest now
The price of a typical shopping basket of food has risen by almost 6 per cent since January – and shoppers face even higher bills in the months ahead as companies are unable to absorb higher fuel costs.
Consumer research has found that families are already cutting down on eating out, going to the theatre, buying clothes and updating household appliances and furniture.
Neil Saunders, consulting director at Verdict Research, said that the lowest income groups were feeling the pressure most because a greater proportion of their cash went on food.
The extra food costs are adding about £514 million a month to the national grocery bill. The sharpest rises are for fresh fruit and vegetables, up by almost 16 per cent since the start of the year. This is mainly because of the cost of packaging – oil is used to manufacture plastic – and the costs have risen in line with basic oil prices.
The costs of lavatory paper and kitchen rolls were also significantly higher at 15.7 per cent, because of the increase in fuel costs. Such items may be light but they are bulky to transport.
Verdict has kept a note of the prices of 100 branded grocery items, including their value, standard and premium ranges. The list is commercially sensitive as it is sold to retailers, but a snap-shot given to The Times shows that some of the highest increases are for cauliflower (up 44 per cent) and basmati rice (33.3 per cent).
In a minority of areas, such as health and beauty products and ready meals, prices have fallen. A 500ml mouthwash, for example, is 10 per cent cheaper now than in January and washing-up liquid is down by 2.4 per cent.
Mr Saunders said that the inflationary effect on food would continue throughout the year. “The rises are certainly not a flash in the pan. Prices may moderate towards the end of the year but we don’t expect to see any drastic falls. Spending more on food is here to stay.”
There is already anecdotal evidence from market research companies that some households are switching from the four big supermarket chains to discount stores such as Aldi and Lidl. “When people feel squeezed they look to see where they can make savings, especially for a family,” Mr Saunders said.
Prices of the leading supermarkets’ own-label products were up by 5.6 per cent in four months, while branded products were up 6.1 per cent, proof that Tesco, Sainsbury’s, Asda and Morrisons were helping to ease rises, he said. “I think supermarkets are trying hard to keep prices down. They are not passing all the increased costs to the consumer.”
Even though wheat prices were escalating, the cost of an own-brand large white sliced loaf was 37p – unchanged from January. Mr Saunders said that the supermarkets’ value ranges gave shoppers the option to trade down to save money.
Similarly an increase in the number of “buy one, get one free” promotions was helping families to save money by buying in bulk.
Upmarket chains such as Waitrose and Marks & Spencer are continuing to enjoy robust sales. “These can benefit from people deciding to buy luxury food to eat at home instead of eating out. Their customers may also be feeling the pinch, but do not have to cut down hard on food bills,” Mr Saunders said.
Basket case
Percentage increase Jan to May 2008
Cauliflower 44.7
Basmati rice 500g 33.3
Ham 125g pack 27
Medium whole chicken per kg 25.3
Broccoli 300g packaged 23.5
Iceberg lettuce 23.4
Dishwasher tablets 45s 22.5
Margarine, 500g 19.2
Penne pasta 500g 18.6
Pork chops per kg 13.6
Muesli 750g 12.2
Frozen peas 800g 9.5
Sliced white bread 800g prem 7.2
6 medium free-range eggs 6.5
Mature Cheddar cheese 400g 5.7
Baked beans 415g 5.6
Chicken breasts, 2 skinless 4.5
2-pint semi-skimmed milk 4.4
Sliced white bread 800g stand 4.2
Sweet-and-sour chicken Chinese meal 350g (chilled) 3.5
Wholemeal bread, 800g 3.2
Salmon skinless 240g 1.4
Sliced white bread 800g value 0
Dogfood tins 400g -1.9
Washing-up liquid 500ml -2.4
Butter 250g pack -2.7
Deodorant spray 150ml -2.8
Mouthwash coolmint 500ml -10.2
Source: Verdict Research
The moment your toes touch the sand and your gaze meets water, you know you’re in the Bahamas.
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Shortcuts to help you find sections and articles
05/2005
£13,500
08/2008
£109,950
2005 / 55
£59,500
Great car insurance deals online
Circa £60,000
The Army Benevolent Fund
London
C£100K+
Chronophage
Isle of Man
12-15 days a year, c £12K
Springboard
London
£Competitive
American Airlines
Heathrow, London
Great Investment, River Views
One and Two Bed Apartments
Wandsworth Town
Times Online Property Search will help you Find It
like nothing on Earth!
.
Must end 28 Feb 2009!
Save up to 25%
Amazing Far East Offers
Visit Malaysia from £755pp
Great travel insurance deals online
.
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
We buy our fruit and veg from Birmingham market, there's no packaging, so it keeps the costs down. 33p/kg Bananas, 66p/kg Satsumas, £2.00/kg Cherries, £1.10/kg Mushrooms, 3 cabbages or cauliflowers for £1 and other such bargains.
K TuT, Birmingham, UK, EU
6% is an illusion. i set aside money every 2 weeks to go food shopping and i can assure you that i can now afford far less than 6% of what i used to. where on earth do they get this statistics from?
Alexander, London, England
if you wish to purchase good quility cheep food, go to your local market just once, buy all your fruit and veg, then add this figure to you parking costs, the next week go to your large supermarket ( which offers free parking) and then check one against the other. i know where i buy my food now,
Sean , High Barnet,
By eating away at the tax discount on red diesel the costs of running tractors has risen at a far greater rate than road fuel. This is justified as a green tax to encourage fuel efficiency! How? Should farmers only plough downhill or avoid muddy fields to save fuel.
R Waghorn, Winchester, UK
Ellie, Correct.
Better still, go to your local outdoor market. By bus.
Mine is a must on a Saturday morning, where the fish, game poultry and meat are all fresh, and I get my veg wrapped in a brown paper bag, or even sometimes just tipped into my shopping bag! Just like the old days :-)
Louise, Mirfield, West Yorkshire,
Something is wrong in the Verdict analysis. If dishwasher tablet price rose 22%, why did washing up liquid fall 3%. These have virtually identical transport costs! Neither ONS or Verdict know the real price increases. Only the supermarkets and food producers do. They keep their mouths shut!
Mike, London,
Great to be able to reduce discretionary spending. Unfortunately there are many, including my wife and I, who already could afford to eat out very rarely. If you live on a fixed income these price rises REALLY hurt.
Peter Forrest, Lampeter, Wales
There's some great recipies for 'wall fish (garden snails)' on the Internet.
Dock weed, wall fish, and Burdock root stew isn't too bad either with an onion and a little garlic.
George Glasser, Hoyland Nether, UK
We have all contributed to this spoilt brat of a society, where what we want we get and then dump it in the bin because our eyes are bigger than our bellies, we are all to blame for creating these price rises........live with it!
william thomson, lincoln, u k
And cutting the base rate to 'encourage' more spending will only devalue Sterling further and push prices up even higher!
Paul, Coventry,
With fruit and veg prices rising by 16% mainly due to the cost of packaging you'd have thought a supermarket would take the initiative and revert back to allowing us to buy these products loose, package free. Our over use of plastic bags is one issue, but plastic packaging is an even bigger one.
Tim, London,
If farmers were allowed to invite the public on to their farms and sell their produce direct it might avoid the tax benifits that the government enjoy from the greatly overpriced fuel costs and that just wouldn't suit Gordon and company!
Derek Clifton , Andover, Hampshire, England
How about not wrapping all our fresh vegetables in plastic? Certain supermarkets take this to the extreme - individually shrink wrapped peppers!! They don't need to be wrapped in that way so why do it?
Ellie, London, UK
Janni, London
UK farmers still need diesel to power tractors and it still needs to be delivered on a diesel truck.
As for the rest of you, living on dog food and mouthwash is a small price to pay for living in a socialist paradise...
Dominic, Manchester, England
Um, wasn't it Gordon Borwn who said that under New Labour we would see the end of "boom and bust"?
Guy, London, UK
Transport cost give rise in food price? Is it then not time that we ate food grown in the UK? Support farmers and lower fod prices again seem like two good ideas in one!
Janni, London,
ONS yet another institution wrecked by Labour.
Martin Harrigan, Cambridge, UK
The government has already stated that inflation is only at about 3%. Best joke ever. I've seen my supermarket in-store baked bread go from 79p to £1.09 in the space of little over five months. In fact it hiked from 79p to 99p in one jump. That is a jump of over 15%. 28% overall...
Charles, Cirencester, Great Britain
The ONS have been making fools out of people for years.The cat is out of the bag I'm sorry to say.Lets have the real figures next month.
stephen hulton, eure, france
There must be a hell of a lot of dog food and mouthwash in the CPI shopping basket!
ONS - your fooling no one these days
A Harris, Kettering, UK