Supermarket Bills on the Up

by Michael Ross
Posted by Hannah on 2 June 2008

The weekly shop could be adding to the UK's money worries, as a new study reveals that supermarket costs are rising

A new study has revealed that supermarket costs are officially rising, stretching household finances further and only adding to the UK's money worries .

Research carried out by retail analysis firm Verdict Research found that the average shop from the supermarket cost 5.8 per cent more in May than at the start of the year and will continue to rise.

According to the report, fruit and vegetable prices are up 16 per cent since the beginning of 2008, with increasing fuel costs likely to push prices up further in coming months.

Dairy products had risen in price by 6.2 per cent, although the cost of ready meals had fallen 5.1 per cent.

"For many, the price of the weekly food shop is the real measure of inflation - it's what they react to when they make decisions about the household budget and what to spend on other things," said Neil Saunders from Verdict.

"For those at the lower end of the income scale, increases in food prices can be very difficult to cope with because they aren't many other areas where they can cut back to make savings."

Bank of England governor Mervyn King warned Britons earlier this month that the consumer price index rate of inflation could hit 3.7 per cent this year.
 

Get our free money saving newsletter
Join over 480,000 other subscribers who grab our expert money tips, unmissable money guides & hottest bargains each week in our special email...