29 March 2023
Households face £837 hike to annual bills and are more likely to 'shop like chefs'.
SUPERMARKET inflation has hit a new high of 17.5%, with households now facing a potential £837 hike in the annual cost of their food basket, according to Kantar.
HyperJar, a UK financial budgeting app, has also revealed that 40% of its customers can't save anything as the average annual household bill for groceries is now £5,617 and food prices are 15% more expensive than this time last year.
Additional research from HyperJar reported 42% of its customers plan to spend less on groceries and energy in response to the cost-of-living crisis. A further two-thirds are increasingly buying more from supermarkets' own-brand value ranges to cope, with sales of these products growing by 9.3% in January.
Millions of consumers are also set for an increase in their broadband and mobile contracts, with many customers expecting to see their bills rise by as much as 17.3%, while water bills are set to rise across the board, with the average annual price set to stand at £448, although Government assistance is being increased to provide help to 1.2m households.
HyperJar Founder Mat Megens said: "There’s a shift in grocery shopping habits among our customers as they move from the higher end supermarkets to the mid-tier and discounters. Frequency of visits is increasing dramatically as people ‘shop like chefs’, buying more often so they get only what they need and reduce waste. So while basket value is stable, overall monthly spend is higher, reflecting both food inflation as well as people eating at home more rather than dining out.
"Food shopping is one of the biggest everyday expenses for most of us and it’s taking increasingly large chunks out of our household budgets. Even if you can’t save much at all, being more conscientious with your spending will help you psychologically. An understanding of what you have and where it needs to go will help make navigating this period less stressful."
Photo: Emil Kalibradov