Grocery inflation in the UK hit a record high in August, adding £571 to the average annual food bill, new data shows.
Research firm Kantar, which tracks supermarket spending and prices, said the cost of groceries rose at an annualized rate of 12.4% in August, the fastest since the company began save the data.
Fraser McKevitt, head of retail and consumer insights at Kantar, said: “There appears to be no end in sight to food inflation, as the rate at which prices increase in food and drink continues to accelerate.”
He added that the average annual grocery bill would rise from £4,610 to £5,181 if consumers did not change what they were buying.
Prices in categories such as milk, butter and dog food are rising particularly rapidly, at rates of 31%, 25% and 29% respectively.
Consumers buy own brands from supermarkets to save money. Overall spend on retailers’ own brand lines has increased by £393m over the past four weeks, giving own brands a 51% market share.
Discount supermarkets are also doing well.
“In the early 2010s, Tesco, Sainsbury’s, Asda and Morrisons together made up more than three-quarters of the sector, but that traditional big four is no more,” McKevitt said.