The UK is experiencing double-digit inflation, propelled not only by food prices, but also by energy bills. TOBY MELVILLE/REUTERS
A consumer association across the Channel presents the latest figures as “very worrying”.
The prices of food and everyday products bought in supermarkets have increased by more than 17% over the last four weeks in the United Kingdom, a record, and fuel poverty is increasing there. The soaring food prices relayed by a study by the company Kantar published on Tuesday is much higher than the overall rise in prices in the country, which currently exceeds 10%. In the midst of the cost of living crisis, this surge in the price of basic foodstuffs “has a big impact on people’s livesnotes Kantar.
A quarter of Britons say they are going through financial difficulties, up from a fifth a year earlier, according to this study. For supermarkets, the battle “to offer the best added value to consumers continues in a very competitive sector where traditional distributors are trying to protect their market share against low-cost brands“, continues Kantar. Distributor brands are highlighted and “buyers prefer themto major brands since February last year, notes Kantar.
“These figures are very worrying», commented the consumer association Which? in a press release. Numerous studies show that households are already skipping meals, reducing their food purchases, or rationing themselves in an attempt to stay afloat financially. Which? notes that “confidence in supermarkets is falling, with many people believing they are prioritizing profits over their struggling customers during this crisis“.
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Only major economy in recession
Distributors such as the online platform Ocado find themselves “in the eye of the stormas Hargreaves-Lansdown analyst Sophie Lund-Yates observes. The British company saw its losses double over one year and its sales stagnate despite an increase in the number of its customers, who reduced the amount of their orders. The title plunged on the stock market on Tuesday after this announcement.
Double-digit inflation in the UK is being driven not just by food prices, but also by energy bills. These should continue to climb in April due to a reduction in government aid, despite a reduction decided by the regulator in the maximum that can be billed to households.
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Department of Energy statistics released on Tuesday show that 13.4% of UK households, or 3.26 million, were in fuel poverty in 2022. This is more than a year earlier (13.1% ) and this figure should continue to climb to 14.4% this year according to the ministry. The British energy mix is particularly dependent on gas, whose prices have soared in the wake of the war in Ukraine. They have since fallen, but this decline is slow to be reflected in the costs of businesses and individuals, especially as the costs of operators are increasing in the process.
A shortage of workers, repeated strikes to demand better wages, supply problems in the wake of Brexit and the pandemic are also contributing to maintaining high inflation in the country. The International Monetary Fund (IMF) expects the UK to be the only major economy to suffer a recession in 2023, performing worse than the eurozone or the US, but also that in Russia, which has been hit with numerous international sanctions because of its invasion of Ukraine.
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