The UK has been in a cost of living crisis since late 2021. Food is one of the areas with the biggest increase. The UKOffice For National Statisticsreported in the beginning of October that 48% of Britons say they spent more than usual when shopping during the past few weeks. 4 out of 10 adults say they are buying less food because of the surge in prices. To illustrate their hardships, a UK TikTok accountCost Of Living Crisis Tipscompared prices at supermarkets from September 2022 to 2023.
A UK resident posted a TikTok comparing prices at their local supermarkets to show just how high the prices of groceries are getting
Image credits:Hobi industri (not the actual photo)
“Let’s see how much prices have changed since September last year in Sainsbury’s. Müller yoghurts were 40p, now they’re 90p – up 125%”
Image credits:costoflivingcrisistips
“These small tins of Heinz beans were 50p, now they’re £1 – up 100%.”
“Fray Bentos were £1.50, now £3.25 – up 116%.”
“This Heinz lentil and bacon soup was 85p, now £1.70 – up 100%.”
“Crisp N Dry one liter was £1.40 and now £3.25 – up 132%.”
“Goodfella’s pizzas were £1.50 and now £3 – up 100%.”
“Birds Eye battered cod fillets were £4, now £6.50 – up 62%”
“Sainsbury’s own French fries were £1.20 and now £2 – up 66%”
“Birds Eye chicken chargrills were £2.67, now £4.50 – up 68%”
“Branston beans and sausages were 85p, now £1.50 – up 76%.”
“Cirio tomato puree was £1.45, now £2.70 – up 86%”
“Filippo Berio olive oil 500ml was £5, now £7.50”
The video has drawn people’s attention and racked up over 1 million views
“This week on food prices exposed Iceland and Food Warehouse. Mature cheese was £1.50, now it’s £2.40 – up 60%”
“Salad tomatoes were 79p, now they’re £1.19 – up 50%”
“Chocolate mousse were £1, now they’re £1.50 – up 50%”
“Hash brown waffles were £1.50, now they’re £2.75 – up 83%”
“Crispy chips were £2, now they’re £2.75 up – 37.5%.”
“Hash brown waffles were £1.50, now they’re £2.75 and they’re also up 83%”
“Red onions were £1 now they’re £1.49 – up 49%.”
“Tex Max dip was £1.30, now it’s £2- up 53%”
“Stone Baked garlic bread pizza was £1, now it’s £1.50 – 50%.”
“Chicken popsters were £1, now they’re £1.50 – up 50%”
“Orange juice and apple juice was £1.35, now it’s £2 – up 48%”
“Luxury coleslaw was £1.50, now it’s £2.25 – up 50%. All these products are Iceland’s own brand”
The TikToker also exposed current food prices at Iceland and Food Warehouse
The current crisis has many Britons asking: why are groceries getting more expensive when world food prices are seemingly going down?
TheUN Food and Agriculture Organization(FAO) reported that the food price index in September 2022 was 136.0. Now, a year later, it’s dropped to 121.5. It’s still high compared to pre-pandemic years, when the highest numbers were merely over 90, but there’s an obvious decline. So why are groceries still getting more and more expensive in the UK?
One of the largest trade unions “Unite” blames the trend of“greedflation”.They reportedthat food manufacturers, shipping companies and supermarkets have increased prices that go beyond costs of raw materials and wages. Apparently, companies have taken advantage of inflation and increased their profits at the expense of consumers, raising food prices unnecessarily, hence the term “greedflation.”
However, there are those who disagree.The Economisthas called “greedflation” a “nonsense idea”. In their article, they argue that it’s the policymakers who let inflation run out of control. Companies have made profit margins on petrol between 2019 and 2022, and supermarkets are absorbing some of the inflation and actually subsidizing food prices.
“You can quite clearly see that [supermarkets’] margins are stronger on fuel and their overall margins are slightly down and the delta between those two is the margin they make on groceries,” Justin King, a board member at Marks & Spencer, toldThe Guardian.
Both global and local factors have caused the current cost of living crisis in the UK. Brexit and additional taxes on households together with the COVID-19 pandemic and the war in Ukraine share the blame
The UK’s exit from the European Union resulted in thedepreciation in the value of the pound, which in turn caused import prices to increase. Brexit also increased the cost of doing business with Europe, which led to stunted growth of productivity overall.
Somedomestic taxesalso put further pressure on Britons’ finances. The government opted to raise national insurance and council taxes. What’s more, they froze the income tax threshold, which will result in more expenses for most of the working population.
These domestic aspects are closely linked to the global pandemic and the war in Ukraine. When the lockdown restrictions were lifted,demand for goods skyrocketed, and businesses were not able to meet it. This resulted in supply shortages all over the world.
Just as the balance began to be restored again, the Russian invasion of Ukrainecaused shortagesof gas, oil, energy and food. Russia is Europe’s main supplier of gas, and huge amounts of grain and sunflower oil are imported into Europe from the Ukraine. The EU’s sanctions on Russia and the disruption of Ukrainian grain export caused another supply shock, resulting in increased food and energy prices yet again.
Harvir Dhillon, the economist for British Retail Consortium, toldThe Guardianin May that even if inflation has reached its peak and will start decreasing, high food prices might still remain. “The pace at which food inflation comes down is going to be a lot slower than perhaps we would like,” he said.
Work & Money
