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Sainsbury’s predicts ease on food bills

Sainsbury's confirms food inflation will come down

A can of Sainsbury's basic soup

Budget ranges can be as or more healthy than premium ones

Shoppers can expect to see food price rises easing as Sainsbury’s has confirmed that food price inflation is finally tailing off.

Sainsbury’s says it is currently seeing food price inflation of 5% to 6% in its stores, but prices are falling from their peak in the three months to October.

The news comes as Which? prepares to launch its supermarket price comparison tool next month, which will track food prices at all the major supermarkets. 

The most recent Which? high street retailer survey shows members are favouring discount supermarkets Aldi and Lidl over Sainsbury’s and other big name supermarkets, with price a top priority for shoppers.

Food prices to fall

Sainsbury’s said shoppers would see a couple more quarters of high food price inflation, but that ‘the near-term outlook is for a reducing level of inflation’.

The supermarket’s own-label basic range has grown to 550 products. More than half the products cost less than £1 in a bid to fight rising competition from Aldi and Lidl.

Sainsbury’s said that price rises in its stores generally would be less steep as it would be concentrating more on own-label goods. Shoppers are making the choice to switch to own-label products, it said.

Sainsbury’s offers

Sainsbury’s has already put plans in place to ease food prices over Christmas, with 25% off wine and three-for-two offers on gifts.

The supermarket said it wants to deliver low prices without compromising on quality.

Which? retail researcher Sarah Dennis said: ‘This news will come as a welcome relief to shoppers in the face of the busy and expensive Christmas period. But many clued-up shoppers are already taking advantage of the choice of cut price food, as, like Which?, they have found that quality is not always lower.’

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