It’s not just the United Kingdom, but as we await the latest figures from monthly U.S. data, the statistics from the U.K. are hitting the newswires. According to Reuters, food inflation in the U.K. is currently 17.1% The primary driver of the skyrocketing food costs is the energy cost associated with the fast turnover categories.
With prices increasing 17.1% yet net sales only increasing 8.1%, there is a substantial impact in unit food sales. British customers are buying much less to offset the fact they are paying much more. This trend is not just in the U.K. we have seen the same trend in U.S. data as families are being squeezed at the grocery store.
The prices on name branded products like Kraft and Heinz are leading the escalating food prices. Just last week I noticed 6oz Kraft Philadelphia cream cheese was $6.99, and a 24 oz. bottle of Heinz ketchup at over $8. Dairy products are leading the way with the most rapid increases in price. It appears that we are entering the fourth wave of food inflation currently.
LONDON, Feb 28 (Reuters) – British grocery inflation hit 17.1% in the four weeks to Feb. 19, another record high, dealing the latest blow to consumers struggling with a cost-of-living crisis, industry data showed on Tuesday.
Market researcher Kantar said prices are rising fastest in markets such as milk, eggs and margarine. It said UK households now face an additional 811 pounds ($978) on their annual shopping bills if they don’t change their behaviour to cut costs.

