The overall CPI rate of inflation may have peaked, as it has dropped from the more than 11 percent in November, but prices continue to rise at the supermarket. Food prices increased by a record 13.3 percent last month, according to data from the British Retail Consortium.
Victor Trokoudes, founder and CEO of Plum, warned high food prices could remain for some time to come.
He told Express.co.uk: “The latest CPI figures show that inflation remains at high levels, putting pressure on everyone’s finances.
“The weekly shop is one area where people are already feeling the pinch. Prices of everyday food items have risen sharply due to the rising production costs, like energy costs, animal feed, fertiliser and fuel, coupled with low profits for farmers.
“Everyday items like milk, bread and eggs have been hit particularly hard. If we look ahead to the more distant future, the OBR is predicting that inflation will be in negative figures by halfway through 2024.
READ MORE: ‘World beating’ Isa savings option yields 6.6% with more to come
“This feels hard to believe as we are currently in double figures, but bear in mind that their predictions have been quite accurate thus far (for example, saying the inflation would peak at around 11 percent which it appears to have done at the end of last year).”
Although the overall rate of inflation may go down over the coming months, this may not be reflected in the price of food.
Mr Trokoudes explained: “ Unfortunately the impact of inflation on food production cannot be undone easily, so it’s likely that high prices will remain for the foreseeable future. The best we can hope for is that things do not get dramatically worse.”
With high food prices set to continue to put pressure on Britons’ budgets, people will be keen to make savings wherever they can with their weekly food shop.
DON’T MISS:
The financial analyst said there are some “tried-and-tested” techniques for slashing the cost of a weekly food shop.
He commented: “Start by drawing up a plan of what you want to eat over the week so only buy what will actually get used.
“Set a realistic budget beforehand and then shop online or with a smart scanner in store so you can keep track of what you’re spending.
“It’s always worth having a quick compare of prices between supermarkets too, as some have the same produce for cheaper prices.”
READ MORE: Recession fears continue despite UK economy growing
The food expert recommended bulk buying non-perishable items that a person eats all the time, such as past and rice, as this can work out cheaper than buying them when needed.
He added: “I’m not a big fan of discounts and coupons as much of the time you end up buying things you wouldn’t have bought in the first place, but it is worth signing up to a reward scheme that offers cashback though if you frequently shop at the same place.
“Sainsbury’s Nectar points can be used to pay for a wide variety of things, and the Lidl Plus app gives you a percentage off your next shop once you’ve spent a certain amount.”
Sue Davies from Which? said the figures from the British Retail Consortium, showing food prices have continued to rise quickly, was “hugely concerning”.
She added: “Which? research has found millions of people are skipping meals or struggling to put meals on the table.
“Supermarkets must ensure budget lines for healthy and affordable essential items are widely available.”
Helen Dickinson, chief executive of the consortium, said: “2023 will be another difficult year for consumers and businesses as inflation shows no immediate signs of waning.
“Retailers will continue to work hard to keep prices low. However, further high investment in prices may no longer be viable once the Government’s energy bill support scheme for business expires.
“Without it, retailers could see their energy bills rise by £7.5billion. Government must urgently provide clarity on what future support might look like or else consumers might pay the price.”
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
