The average household spend on food and drink is on course to rise by £275 this year as the price of groceries gathers pace.
Over the past month, food prices have risen by 5.4% at the same time as consumers’ concerns about the cost of shopping has accelerated, according to market research firm Worldpanel.
It said people are changing their shopping habits to buying supermarkets’ own-brand products, which are sometimes cheaper, as well as preparing simpler and lower cost meals at home.
The increase in prices over the last four weeks is the highest since the beginning of 2024.
On average, UK households spend around £5,283 for a year on groceries but this could increase by £275 unless people change what they buy.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, formerly known as Kantar, said current food inflation brought to mind the sort of prices people were paying in supermarkets after Russia’s full-scale invasion of Ukraine in early 2022.
The cost of energy and commodities soared before easing in 2023. But Mr McKevitt said: “We’re back up on that rollercoaster.”
Chocolate, butter and spreads as well as fresh meat recorded the sharpest rises in the four weeks to 17 July, according to the company, which monitors prices on 75,000 identical products.
At the same time, the cost of dog food, sugar confectionery and laundry dropped.
Mr McKevitt said most people have options when it comes to managing food costs such as buying more own-brands goods from supermarkets, looking for promotions or going to cheaper shops.
But Worldpanel said that around a fifth of households in the UK are “struggling” with grocery bills, with some of those in a situation where they can not cut food costs any more.
The research firm, which follows the shopping habits of 30,000 households across the UK, said people are making simpler evening meals when trying to save money.
“Almost seven in 10 dinner plates include fewer than six components,” said Worldpanel.