The price of butter, fish and cola have seen the fastest rises in recent weeks as food inflation rose to its highest level in four years, new figures show.
Like-for-like food inflation hit 3.4 per cent in the twelve weeks to November 5, its highest level since November 2013, with only the price of items like poultry and crisps falling in the period.
The rise in grocery inflation means that a typical family could pay an extra £144 a year for their groceries, market research firm Kantar Worldpanel said.
It comes as official figures, also out today, have showed consumer price inflation remained stable at 3 per cent last month, mostly thanks to a drop in petrol prices, while food prices showed the biggest increase.
The Kantar report also shows that all Big Four British supermarkets are continuing to lose market share to discounters despite increasing sales, which it said jumped mostly because of higher inflation.
Sales increased 3.2 per cent in the period compared to last year, but sales volumes rose by less than 1 per cent.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said this meant ‘it’s price rises keeping supermarket performance buoyant’.
It comes as Tesco, Sainsbury’s, Asda and Morrisons saw their market share dipping by between 0.1 and 0.2 per cent in the period, with Aldi and Lidl taking up that space.
Lidl was Britain’s fastest-growing supermarket for the fifth consecutive period
Lidl was Britain’s fastest-growing supermarket for the fifth consecutive period, with sales up 15.1 per cent helped by new store openings. That compares to Tesco’s 2.3 per cent sales increase, Sainsbury’s 2.6 per cent rise and Morrisons’ 2.1 per cent.
Lidl saw its market share increase by 0.5 percentage points to 5.1 per cent, while Aldi’s rose to 6.7 per cent.
Britain’s big supermarkets have tried to recover lost ground by lowering prices and are now also looking at acquisitions to strengthen their position.