UK consumers are facing the sharpest rise in food bills in 13 years as the cost-of-living crisis hits households. Food price inflation soared to 8.3% in the four weeks to June 12 – up from 7% a month earlier and the highest level since April 2009, according to new data from data firm Kantar. This means that the annual grocery bills will increase by 80 380 £ this year, burdening people who also face high energy bills and record prices for petrol and diesel pumps. Fraser McKevitt, head of retail and consumer information at Kantar, says food bills are rising sharply: “This is more than 100 100 more than the number we reported in April this year, showing how sharply recent price increases have been and the impact that inflation has on the industry.” As food prices rise, buyers are increasingly exchanging branded products for cheaper products with their own label. Kantar reports that sales of branded products fell by 1% in the 12 weeks to June 12, while sales with their own label increased by 2.9% and value series with their own label increased by 12%. McKevitt said sales of self-labeled series have been “boosted by the strong performance of Aldi and Lidl, which both have extensive repertoire of their own label”, adding: “We can also see consumers turning to value lines, such as Asda Smart Price, Co-op Honest Value and Sainsbury’s Imperfectly Tasty, to save money.” We reported last month that the “golden age” of cheap food in the UK is over, and Kantar figures confirm that household pressure is getting worse.
He is also coming today
The largest nationwide rail strike in Britain in 30 years has begun, leaving train passengers facing extensive layoffs and cancellations as workers responsible for train lines and infrastructure across the UK leave. Industry leaders fear the financial turmoil will be significant as travelers and commuters decide to stay home, with strikes also scheduled for Thursday and Saturday. Waterloo Station this morning, the first day of the National Rail Strike in London. Photo: Henry Nicholls / Reuters Yesterday’s talks failed to resolve the bitter dispute over wages, jobs and conditions, with all sides blaming each other for the lack of progress. RMT said train operators made a late payment offer yesterday, which is believed to be around 2-3%, with no guarantees of mandatory redundancies. This is well below inflation, which reached 9% in April. Richard Burge, chief executive of the London Chamber of Commerce and Industry, warned that the capital “could not afford a summer of chaos on the railways and subway lines” as the economy slowed. “Although this strike will be harmful, a recession seems possible, regardless of it. “Therefore, I would not put a possible recession in this strike.”
THE AGENDA
8 a.m. BST: Kantar report on the UK grocery sector 11 a.m. BST: CBI Industrial Trends Survey in UK Factories in May 1.30 p.m. BST: National Fed Index of Chicago 15:00 BST: Housing discounts in the US for May
The hospitality industry is expected to lose 500 500 million from the strikes
Geneva Abdul Today’s UK railway strikes will cost restaurants, pubs and other hospitality companies 500 500 million in revenue, said UKHospitality CEO. Speaking on BBC Radio 4 today, Kate Nicholls said that with businesses closing early or not opening in response to rail strikes, hospitality staff would also be out of work. This strike will not only have an impact this week, but will hurt consumer confidence in the future. And as a result of the pandemic, one in three of our businesses has no cash reserves, one in five has not yet returned to make a profit. So they are incredibly fragile and can no longer withstand these severe financial shocks. My colleague Geneva Abdul writes live about today ‘s industrial activity in the transport network, here:
Rolls-Royce offers employees £ 2,000 to help reduce the cost of living crisis
The escalating cost of living pressure in the UK has prompted the Rolls-Royce group of engineers to offer a 000 2,000 payment to around 14,000 UK staff. The aircraft engineering team told staff Monday that it would give the lump sum to 11,000 store employees as well as 3,000 junior executives. Employees in the stores are also offered a 4% salary increase for 2022, from March. A Rolls-Royce spokesman said the company was offering the majority of its staff a lump sum of 000 2,000 “to help them cope with the current dire financial climate”. He said it was the first time the company had paid a lump sum that was not linked to performance but to the economic climate, adding: “In addition, we offer our store staff the highest annual salary increase for at least a decade, since March, and together these measures represent a salary increase of about 9% for them.” Despite rising food bills, the British erupted in celebration of the Queen’s Platinum Jubilee. Sales during Platinum Jubilee week (which included two public holidays) were εκατο 87 million higher than the average week, with an increase in alcohol and ice cream. Market leader Tesco and Aldi and Lidl were the only groups to increase their market share based on sales value over the 12 weeks. Only the discounts increased sales, Kantar said, as customers tried to make their money expand further. Supermarket sales fell 1.9% year-on-year in the 12 weeks to June 12, but rose 0.4% in the last four weeks.
Introduction: Food inflation has reached a 13-year high
Good morning and welcome to the rolling coverage of business, the global economy and the financial markets. UK consumers are facing the sharpest rise in food bills in 13 years as the cost-of-living crisis hits households. Food price inflation soared to 8.3% in the four weeks to June 12 – up from 7% a month earlier and the highest level since April 2009, according to new data from data firm Kantar. This means that the annual grocery bills will increase by 80 380 £ this year, burdening people who also face high energy bills and record prices for petrol and diesel pumps. Fraser McKevitt, head of retail and consumer information at Kantar, says food bills are rising sharply: “This is more than 100 100 more than the number we reported in April this year, showing how sharply recent price increases have been and the impact that inflation has on the industry.” As food prices rise, buyers are increasingly exchanging branded products for cheaper products with their own label. Kantar reports that sales of branded products fell by 1% in the 12 weeks to June 12, while sales with their own label increased by 2.9% and value series with their own label increased by 12%. McKevitt said sales of self-labeled series have been “boosted by the strong performance of Aldi and Lidl, which both have extensive repertoire of their own label”, adding: “We can also see consumers turning to value lines, such as Asda Smart Price, Co-op Honest Value and Sainsbury’s Imperfectly Tasty, to save money.” We reported last month that the “golden age” of cheap food in the UK is over, and Kantar figures confirm that household pressure is getting worse.
He is also coming today
The largest nationwide rail strike in Britain in 30 years has begun, leaving train passengers facing extensive layoffs and cancellations as workers responsible for train lines and infrastructure across the UK leave. Industry leaders fear the financial turmoil will be significant as travelers and commuters decide to stay home, with strikes also scheduled for Thursday and Saturday. Waterloo Station this morning, the first day of the National Rail Strike in London. Photo: Henry Nicholls / Reuters Yesterday’s talks failed to resolve the bitter dispute over wages, jobs and conditions, with all sides blaming each other for the lack of progress. RMT said train operators made a late payment offer yesterday, which is believed to be around 2-3%, with no guarantees of mandatory redundancies. This is well below inflation, which reached 9% in April. Richard Burge, chief executive of the London Chamber of Commerce and Industry, warned that the capital “could not afford a summer of chaos on the railways and subway lines” as the economy slowed. “Although this strike will be harmful, a recession seems possible, regardless of it. “Therefore, I would not put a possible recession in this strike.”
THE AGENDA
8 a.m. BST: Kantar report on the UK grocery sector 11 a.m. BST: CBI Industrial Trends Survey in UK Factories in May 1.30 p.m. BST: National Fed Index of Chicago 15:00 BST: Housing discounts in the US for May
