Food has gone up 19 per cent — time to bust out the cheap ketchup

Atrato principal Ben Green quoted by The Times in a recent piece on food inflation.

Although it’s clear that supermarkets have had to pass through high food price inflation (which is now over 19%), grocery sales have only grown at around 9%.

As Ben explained in the article:

“Supermarkets are typically quick to respond to changing prices, passing on cost increases to consumers to protect margins… with consumers increasingly opting for discount options….”

There is a perception that this translates into customers abandoning the Big 4 for the discounters. However, when you look at the numbers it’s clear that much of Aldi and Lidl’s market share gains have come through bigger price rises (23.7% and 25.2%) than Tesco & Sainsbury’s (14.4% and 15%).

Read the full article: