LONDON (Reuters) – UK grocery inflation is easing but many Britons are still suffering in a cost-of-living crisis now into its second year, the boss of discount supermarket chain Aldi UK said on Monday.
UK food price inflation reached its highest since 1977 in March at over 19%. This official measure slowed to 13.6% in August and while industry data showed it at 12.2% in September, rising food prices remain a major strain on the finances of many households.
“Whilst grocery inflation has started to ease, it’s clear that people remain under real pressure from its impacts,” Aldi CEO Giles Hurley told reporters.
Earlier this month, market researcher Kantar said its data showed that 95% of UK consumers were still worried about the impact of rising grocery prices, matched only by their concern about energy bills, while just under a quarter of the population considered themselves to be struggling financially.
“Our own research with YouGov tells us that three in four people have changed their grocery shopping habits because of increased living costs, making fewer shopping trips, shopping with numerous supermarkets and switching their main supermarket altogether,” Hurley said after Aldi UK reported 2022 results.
He highlighted that the popularity of own-label, or private, ranges, which are generally cheaper than branded goods, was a major change in how Britons are now shopping.
“Own label now represents 54% of the (UK) grocery market by value compared to 51% in 2013, that’s a 3 billion pound ($3.7 billion) shift in sales in just ten years,” he said.
Some 90% of Aldi UK’s range is own-label.
($1 = 0.8181 pounds)
(Reporting by James Davey; Editing by Sachin Ravikumar)