Sales volumes in supermarkets – the number of products that people paid for at the tills – dropped by 4.2 per cent in June compared to the year before, official figures from the ONS show. This is the biggest fall since the ONS started collating the figures in 1988. Spiralling food prices were blamed for the decline in sales volumes. The ONS said that food prices rose by 5.8 per cent above inflation in June, meaning that consumers had to cut back on the amount they bought to make ends meet. Inflation currently stands at 4.2 per cent. The increase in food prices in June was the highest for over two years.
The figures came as a survey by Which?, the consumer group, showed that a third of all Britons have cut back on their weekly shop due to rising prices on supermarket shelves. Over 80 per cent of shoppers are worried about the rising cost of food, while four in ten consumers have changed their shopping habits and are visiting discount supermarkets such as Aldi and Lidi more often than they were previously. Shoppers are increasingly switching to cheaper brands, buying ‘value’ packs and shunning organic food. Almost four in ten shoppers said that they are less likely to buy organic meet, and 43 per cent said that they are cutting back in organic fruit and vegetables. Only 8pc of adults in the nationwide Which? survey said that they have not noticed increases in food prices over the last year.
The food sector accounts for almost half of all retailing in the UK. For every one pound spent, 42 pence is spent in a supermarket, the ONS said. Despite the fall in sales volumes, the value of sales in supermarkets – the amount of money taken through the tills – increased by 1.3 per cent over June.
Source: The Telegraph
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