Government must act as some groceries almost triple in price over two years

The price of some groceries has almost tripled since the cost of living crisis began, Which?'s food inflation tracker reveals.

Our latest research shows annual supermarket food inflation was at 15.4% in June. This has slowed slightly since it peaked at 17.2% in March. 

But this time last year prices had already started spiralling, so a year-on-year comparison doesn't show the true extent of the inflation shoppers are facing. 

When we looked at a two-year period - going back to when the cost of living crisis began - we found prices had actually gone up by a whopping 25.8%.

Which groceries have seen the biggest spikes?

We've looked at what's happened to the prices of more than 21,000 food and drink products at eight major supermarkets - Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose - since June 2021, when CPI inflation was 2.5%.

While the overall inflation rate was 25.8%, some individual items were almost three times more expensive in the three months to the end of June 2023 compared to the same period in 2021.

The worst example we found was a six-pack of Mr Kipling bakewell cake slices at Sainsbury’s, which went from £1 to £2.75 on average – a rise of 175%. Also at Sainsbury’s, British Pork Loin Steaks (4 x 480g) went from £1.94 to £4.28, an increase of 120.6%.

It was more bad news for Mr Kipling fans at Tesco, where its chocolate slices went from £1 to £2.59 - a 159% rise.

Morrisons' own-label mozzarella (125g) went from 49p to £1.19, increasing by 142.9%, while Asda's own-label Free From Special Flakes (300g) went from 62p to £1.50, up 141.9%. 

At Lidl, a pack of Wesergold orange juice from concentrate (5 x 200ml) went from 68p to £1.49 on average, a hike of 120.6%. Lidl told Which? this juice was only available in a few regions of the UK.

• Find out more: what's happening to supermarket food prices?

Are recent price cuts making any difference? 

Our findings show how some supermarket products have been disproportionately hit with high inflation, which has made affording the weekly shop increasingly difficult for some people.

Many of the major supermarkets have recently cut the costs of selected everyday essentials such as milk and bread. However, Which?’s research shows that despite prices decreasing in recent months, own-label British semi-skimmed milk cost £1.45 for four pints across almost all the supermarkets last week - 32% more than it did two years ago (£1.10). 

When it came to sliced bread, the same was true across supermarkets' own-brand medium sliced wholemeal loaves (800g), which are up by a third on average over the two-year period (58p to 75p).

• Find out more: which is the cheapest supermarket? 

How is inflation affecting different ranges of groceries? 

For the first time since Which? started its supermarket price tracker, inflation on supermarkets' own-label budget lines has started to show signs of slowing down year-on-year, going from 26.6% last month to 26.2% this month. In comparison, regular own-brand goods (17.4%), own-label premium (12.8%) and branded goods (12.7%) were less affected by inflation.

When Which? looked at the level of inflation over two years, we found that budget-range groceries had gone up 37.1%. 

While these products are still usually the cheapest available, the sheer scale of these price hikes shows how the poorest in society are being hit the hardest by increased prices.

• Find out more: how to spend less at the supermarket

What needs to be done? 

A Competition and Markets Authority review to determine whether supermarket pricing is fair, and if the grocery sector is truly competitive, is due to be published imminently. 

Which? has been campaigning for supermarkets to do more to help customers, including stocking essential budget-range items in convenience stores - which Morrisons recently committed to. Which? hopes to see Tesco, Sainsbury’s and Asda following suit.

Which? has repeatedly exposed inconsistent and confusing supermarket pricing, so the industry must also commit to clearer unit pricing, especially where it is currently missing on promotions and loyalty card offers. This would help shoppers more easily work out which products offer the best value - a necessity for households on tight budgets during a time of economic crisis.

The government has said it stands ready to update pricing rules and guidance following the CMA’s review of unit pricing. Which? is calling on the government to ensure that reformed legislation is fit for purpose, and reflects current trading practice so that transparent pricing becomes a priority. 

Sue Davies, Which? head of food policy, said: 'Our research exposes the shocking true scale of food price inflation at supermarkets since the cost of living crisis began and shows why recent headline-grabbing price cuts of a few pence on some products are encouraging, but simply won’t be enough to help people struggling to put food on the table.

'It’s crucial that the government responds quickly to the CMA’s grocery pricing review by updating the rules so they are fit for purpose, as we’ve found pricing practices, both online and instore, to be inconsistent, confusing and sometimes missing altogether. Supermarkets should also improve how they display prices in the meantime - particularly where unit pricing is currently not provided on loyalty card offers, such as Tesco’s Clubcard. 

'All supermarkets should follow the example set by Morrisons and commit to stocking essential budget ranges that enable a healthy diet in smaller convenience stores, particularly in areas where people are most in need.'

• Do you want to see your supermarket take action? Sign the petition