NI consumers could face over £800 increase in annual grocery bills
Shoppers in Northern Ireland may see their annual grocery shop rise by £826 despite drops in grocery price inflation, a report has said.
According to retail information company Kantar, grocery price inflation has dropped for the second time, after reaching 16.9% — a record high — in September.
The latest monthly published by Kantar shows the rate at which food prices are rising is now 15.2%, down slightly from the 15.4% last month.
As a result of the climbing prices Northern Irish shoppers have spent an additional £427.2m over the last 12 months.
Kantar has warned they could face an even more expensive grocery shop.
Emer Healy, business development director at Kantar, said: “Grocery inflation now stands at 15.2% for October, which means the average annual grocery bill is set to rise by £826 from £5,438 to £6,264 if consumers don’t make changes to their shopping habits.”
Last month the Office for National Statistics (ONS) announced that UK inflation had held steady at 6.7% — the lowest it has been in 18 months — despite expectations that it would drop further. The latest rate of inflation is to be announced by the ONS on Wednesday.
Interest rates have also remained at 5.25% — a 15 year high — as the Bank of England struggles to bring inflation down to their target of 2%.
The reported figures for Northern Irish grocery market share for November indicates that mounting financial pressures faced by shoppers may be benefitting discount retailers and cheaper alternatives.
According to Kantar, Lidl now holds 9.2% market share in Northern Ireland, and has seen the strongest growth amongst all retailers, up 25.7% year-on-year.
Additional shoppers and more frequent trips contributed an additional £44.3m to their overall performance.
