New research confirms that prices of supermarket own-label and budget ranges have gone up more than premium and branded foods during the cost of living crisis, with Aldi and Lidl seeing the most significant overall hike in prices.
Consumer watchdog Which? tracked the annual inflation of tens of thousands of food and drink products across seven months at eight leading supermarkets – Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose – to see how inflation is impacting everyday products.
The first wave of data from the tracker reveals that supermarket own-label and budget ranges have shot up on average by as much as 18% year-on-year compared to around 13% for premium own-label ranges and 12% for branded foods.
Which? highlighted that the biggest price increases on supermarket budget food for the quarter ending 31 October between 2021 and 2022 were Tesco’s Creamfields Soft Cheese (200G), which went up from 49p to 84p – an increase of 72% – and Sainsbury’s Simply Muesli (1kg) which rose from £1.20 to £2.03 – a 70% increase.
Across 20 of the worst budget products for inflation, Which? found price rises of 50-60%.
However, some mid-priced own-label products saw even bigger price rises. For example, the cost of Waitrose chocolate chip shortbread (200g) almost tripled from 82p in October 2021 to £2.25 in October 2022 – an increase of 175%. The second biggest increase on a single mid-priced own-label product was Asda’s chilli con carne ready meal (400g) which went up from £1.20 to £2.79 – a 132% increase.
Meanwhile, Which? found that the worst supermarkets for overall inflation on food and drink year-on-year were Aldi (+19.6%) and Lidl (+19%). The discounters were followed by Asda (+15.2%), Morrisons (+14.4%), Waitrose (+14.2%), Sainsbury’s (+13.7%) and Tesco (+12.6%). Ocado had the least inflation overall (+10.3%)
Which? noted that although the prices of own-label and budget lines may have risen much more sharply, they still tend to be cheaper than other ranges. The consumer watchdog stated that supermarkets should do more to ensure these lines are more widely available, including in smaller convenience stores. It also called for targeted promotions to support people in the areas that are struggling most with access to affordable food.
“Our inflation tracker lays bare the shocking scale of soaring food and drink prices – including on budget and own-label products. While the data paints a bleak picture, we hope the tracker will help millions of people find the best possible value with their weekly shop during the cost of living crisis,” said Sue Davies, Which? Head of Food Policy.
She added: “We know the big supermarkets have the ability to take action and make a real difference to people struggling through the worst cost of living crisis in decades. That’s why we’re calling on them to ensure everyone has easy access to basic, affordable food lines at a store near them, can easily compare the price of products to get the best value and that promotions are targeted at supporting people most in need.”
Responding to the Which? findings, Aldi noted that items such as milk in its stores had increased due to its decision to pay more to British farmers.
Meanwhile, Lidl disputed the data and said: “Prior to the press release being issued to media, we made Which? aware of multiple discrepancies within the data concerning Lidl prices. This included over 100 separate pricing inaccuracies, which were clearly highlighted to Which? Despite this, they have chosen to mislead consumers by reporting data that they know to be incorrect.”
Asda stated it was focused on keeping the prices of branded and own-label products in check, with Morrisons vowing to remain competitive during an “unprecedented period of inflation”.
Waitrose highlighted that “no retailer is immune to inflation”, with rising production costs and the war in Ukraine just some of the factors that have driven prices up. Meanwhile, Sainsbury’s noted that it had invested £500m to reduce the price of items that its customers buy the most.
A Tesco spokesperson said it has locked the price of more than 1,000 household staples until 2023 and is “keeping a laser focus on the cost of the weekly shop”.
NAM Implications:
- Perception could cause shoppers to query/check at point of purchase.
- And three years of Lockdown fall-out has created savvy and cash-strapped shoppers…
- …who will vote with their feet based on price experience in the aisle.
- Your call, retailers…
