Britons have been forced fed a bitter diet of rising prices for far too long. The fact that we are seeing some easing in food inflation is really important for households.
Businesses have benefitted from a reduced cost burden from lower gas and electricity prices which is feeding into lower food inflation. Recent weeks has seen supermarkets cut the price of basics.
Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “But we’re not out of the woods yet. We are still paying a lot more to put food on tables than last year. The soaring cost of food has brought about a stark shift in shopping behaviours. Baskets have gotten smaller and more of us are ditching premium brands for cheaper alternatives.
“Customers are also increasingly taking a stand against what they deem as unfair prices amid fears that food retailers and producers are profiteering from rising prices. We’ve already seen a large number of shoppers jumping ship to German discount retailers to lower the cost of their grocery shop. Even so, food prices remain uncomfortably high for many, especially for those on a low-income who spend a greater share of their money on food.
“Regardless of the state of food inflation, practicing responsible financial management is always beneficial. While food price inflation is cooling, other expenses such as housing is still going through the roof. It therefore remains important to allocate funds appropriately. Budgeting helps individuals develop good financial habits, understand their spending patterns, identify areas of potential savings, and make informed decisions about their money.”