Supermarket shoppers for the likes of Sainsbury’s, Tesco, Asda and Morrisons are set to fork out an additional £290 on their grocery bills as the Bank of England forecasts food cost inflation
Shoppers at Sainsbury’s, Tesco, Asda and Morrisons are bracing themselves for a potential £290 hit to their wallets before the end of 2025.
The Bank of England has predicted that food price inflation will surge from 4.5% to 5.5% by the end of the year. Given that the typical household forks out £5,283 annually on their weekly shop, this anticipated spike could add an extra £290 to grocery bills.
The alarming food inflation forecast emerged as the Bank of England slashed interest rates on Thursday, August 7. It comes after news that anyone buying fuel next week will be given ‘£15 charge’ warning by The AA.
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The Bank of England said: “These material increases in labour costs are likely to have pushed up food prices.” Officials estimated that between 1% and 2% of food price inflation would be tacked on.
They added: “To reduce the need for higher prices, many firms along the supply chain were trying to mitigate cost increases, including through reductions in headcount.”
Britain’s grocery giants, Tesco, Asda, Sainsbury’s and Morrisons dominate the market, while budget chains Aldi and Lidl offer hope that cost-conscious alternatives will remain affordable for struggling families. However, the grim warning could extend to other food retailers including M&S, Waitrose, Ocado and the Co-op, reports Birmingham Live.
Helen Dickinson, chief executive at the British Retail Consortium, said: “The Bank of England report outlines how the last Budget continues to push up food prices. Government policy will add £7billion to retailer costs this year, from higher employment costs to the introduction of a new packaging tax.
“Food prices have already been climbing steadily, and the BRC has warned this is only the beginning. If the Autumn Budget once again lands on the shoulders of retailers, then it will only serve to fan the flames of food inflation – with poorer families being hit the hardest by the Treasury’s decisions.”
She continued: “While retailers are doing everything they can to shield their customers from rising prices, their ability to absorb further costs is extremely limited.
“If Government goes ahead with its planned higher business rates threshold for 4,000 larger stores – including many supermarkets – then it will be ordinary households who suffer the most.”
Other beloved retailers include Farmfoods, Budgens, and Iceland.
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