UK inflation rises to highest level in almost 30 years at 5.4%

[dutchman]

Asda and Morrisons cut prices as supermarkets fight for customers



Morrisons and Asda are cutting prices as supermarkets face a fierce battle for customers with the soaring cost of living hitting households' finances.

Both supermarkets have been losing customers to discounters such as Aldi and Lidl as price pressures grow.

Morrisons said it would offer an average 13% price cut on more than 500 goods including eggs, beef and rice.

Meanwhile, Asda announced it had "dropped and locked in" prices on some products until the end of the year.

The cost of living is rising at its fastest rate in 30 years in part due to soaring food prices.

Morrisons, which is the UK's fourth-largest supermarket after Tesco, Sainsbury's and Asda, said the cuts would cover refrigerated, frozen and store cupboard food and affect around 6% of its total sales volume.

"We know that our customers are under real financial pressure at the moment and we want to play our part in helping them when it comes to the cost of grocery shopping," said boss David Potts.

Items being discounted include cereal, cooking sauces, chicken and sausages as well as flour, bread and ham.

Meanwhile, Asda said more than 100 products covered by its "dropped and locked" promise ranged from some fresh fruit and vegetables to fresh meat and frozen food.

The supermarket said prices would drop by 12% on average.

"We know that household budgets are being squeezed by an increasing cost of living and we are committed to doing everything we can to support our customers, colleagues and communities in these exceptionally tough times," said Mohsin Issa, co-owner of Asda.

Both Asda and Morrisons are losing out as customers turn to discounters Aldi and Lidl, to cut their costs, according to research firm Kantar.

UK grocery price inflation hit 5.2% in the 12 weeks to 20 March, it said, its highest level since April 2012.

In that time, Lidl and Aldi were the only big supermarkets to see their sales and market shares rise. By contrast, Morrisons and Asda saw the biggest drops in sales and market share.

[dutchman]

HOGWASH!

Morrisons also claimed to have cut its prices two years ago. For every item they cut they raise something else. Shoppers aren't stupid.

[rebbonk]

I use Tesco and for the first time, I am disgusted by what they intend to deliver tonight.

They have told me that several items are not available, despite them showing as still being available earlier today, not to mention available last night before they closed off my option to amend my order. I really am not a happy chappie, there were plenty of substitutable items that could have been offered but weren't. All I can say is thankfully I am mobile and can source things from another source, otherwise I might have gone hungry.

1/10 Tesco. Carry on like this and you'll lose another customer.

[dutchman]

UK inflation hits 40-year high of 9% as cost of food and energy soars



UK inflation soared to 9% in April – its highest level for more than 40 years – as the rising cost of gas and electricity pushed household energy bills to record levels.

The escalating cost of food and transport also contributed to the rising cost of living, deepening the crisis affecting millions of low- and middle-income families.

Business groups said all sectors of industry and commerce were suffering from the steep rise in energy and fuel costs, with many facing a similar shock to their finances as seen during the pandemic but without the same level of government support.

The Office for National Statistics said the 54% increase in the energy price cap in April, which took the average annual gas and electricity bill close to £2,000, was the main reason for the jump in the consumer prices index from 7% in March.

Average petrol prices rose to a record 161.8p a litre in April 2022 from 125.5p a year earlier. Diesel was another factor behind the increase in the consumer prices index from 7% in February after the average cost at the pumps hit a record high of 176.1p a litre, leading to an average increase over the last 12 months in motor fuels of 31.4%.

The end of a temporary VAT cut for the hospitality industry also pushed up prices after restaurants and hotels said they were unable to cushion customers from the increase in the tax from 12.5% to 20%.

A steep fall in the value of the pound on foreign exchange markets piled further pressure on businesses by adding to the cost of imports. Sterling has slumped since last month, from more than $1.30 to $1.24 after hitting $1.22 last week.

Food banks have reported an increase in demand for food packages after the rise in energy bills, while many small business owners have said a combination of higher costs and tax increases have pushed them to the edge of bankruptcy.

Figures from the Resolution Foundation showed the poorest tenth of households faced an inflation rate of 10.2% in April, significantly higher than the 8.7% affecting the top 10% of earners. The Institute for Fiscal Studies thinktank suggested the inflation rate experienced by the poorest households could be closer to 11%.

[rebbonk]

People need to remember that high inflation suits the government as it helps eradicate their debt. - Covid b*ll*cks anyone?

Equally, it treats the more restrained and thrifty amongst us with total disdain as our savings and our prudence are disregarded.

[dutchman]

Governor Andrew Bailey says he is 'helpless' in face of surging inflation



The Governor of the Bank of England has warned of “apocalyptic” global food price rises and said he is "helpless" in the face of surging inflation as the economy is battered by the war in Ukraine.

Andrew Bailey said he has “run out of horsemen” when counting the shocks facing Britain, with runaway energy and food costs driven by global market forces beyond his control.

Prices are rising at the fastest rate in 30 years, creating a "very big income shock" that is expected to intensify in coming months with a risk of double-digit inflation before the end of the year.

Mr Bailey told MPs on the Treasury Select Committee that he is increasingly concerned about a further surge in food costs if Ukraine, a major crop grower, is unable to ship wheat and cooking oils from its warehouses because of a Russian blockade.

The comments from Mr Bailey are likely to increase pressure on the Bank from Conservative MPs who are increasingly exasperated that he failed to act sooner.

Many experts believe the institution acted too slowly in increasing interest rates as prices took off last year, and it has also been criticised for failing to reduce its quantitative easing money-printing programme over the past decade.

The bleak assessment will also likely add to pressure on the Treasury to hold an emergency Budget to tackle the cost of living crisis, after Rishi Sunak, the Chancellor, chose to raise taxes at the same times as incomes were being squeezed.

Food prices are already surging because of fears about the disruption. Ukraine supplies large parts of the Middle East with grain, and there is a risk that families will be unable to afford to eat unless a solution is found. Wheat prices rose as much as 6pc on Monday.

The Governor also admitted that the Bank has little hope of bringing inflation back to its 2pc target, with prices already climbing by 7pc and a further surge expected in the coming months.

Asked by MPs on the Treasury Select Committee if he felt “helpless” to control inflation, Mr Bailey said: “Yes.”

[dutchman]

"Useless" is the word he is looking for, not "helpless"!

[rebbonk]

We've had some useless governors in our time, but this one is the worst. If he can't do the job, time for him to go.

[dutchman]

‘It’s ridiculous’: shock as some UK grocery prices rise by more than 20%



At Sainsbury’s in Whitechapel, east London, the rising cost of food has forced Petra Emmanuel to change her shopping habits.

“Coupled with my utilities bill, it’s ridiculous,” the 51-year-old teacher said. “Even though I don’t buy branded foods, it’s the simplest items that have seemed to have gone up.

“I’ve had to cut down on my meat intake, and on fish too, because of the cost. They are like luxuries now, which I will buy only once or twice a week compared to, say five times a week that I used to do.”

Her experience is being shared by shoppers across the UK who are facing “shelf shock” on almost all types of groceries. Research by Which? has found price rises of more than 20% on some goods, while official figures this week showed many staples have recorded double-digit increases.

Which? analysed the prices of more than 21,000 groceries, using average prices at eight big supermarkets, and compared costs for December last year to the end of February this year with the same period two years previously.

The analysis found that the prices of 265 lines had gone up by more than a fifth.

Which? said the items that had recorded the biggest price rises included a 500g box of Kellogg’s Crunchy Nut corn flakes cereal, which had gone up by 21.4% at Tesco, Asda’s own-label closed cup mushrooms (250g) which were up by the same percentage and Cathedral City extra mature cheddar (350g) which rose by 21.1% at Ocado.

The consumer group said it had examples of shrinkflation – where products were smaller but selling for the same price – and that between December 2021 and February this year the availability of some value ranges had been more limited than previously.

These ranges recorded the lowest inflation overall, with prices increasing by just 0.2%, while standard ranges rose by 2.8% and own-label premium ranges were up by 3.2%.

Across the 20 categories of groceries Which? looked at, fizzy drinks had the biggest average price rises, at 5.9%, followed by butters and spreads, at 4.9%.

On Wednesday, the Office for National Statistics reported food and drink prices were up by an average of 6% year on year, but some everyday products, including milk and pasta, had increased by more than 10%. Its figures, which cover the year to April, suggest many of the items Which? reviewed will be even more expensive now.

Sue Davies, the Which? head of food policy and consumer rights, said “eye-watering” price rises were being exacerbated by other factors to put “huge pressure” on household shopping budgets.

“During an unrelenting cost of living crisis, consumers should be able to easily choose the best value product for them without worrying about shrinkflation or whether their local store stocks budget ranges.”

[rebbonk]

And the useless fat Womble in No.10 would like us to believe that this is all due to that naughty Mr Putin, and nothing to do with his own disgraceful (not to mention scandalous) handling of what was nothing more than a nasty flu bug.