Supermarkets bow to cash-strapped shoppers

First cut in grocery prices since January

By Claire McNeilly
Wednesday, 17 September 2008

Northern Ireland’s retail giants are starting to respond to public outcry and mounting pressure over the cost of food, the Belfast Telegraph can reveal today.

The good news comes as fresh data provided by a leading comparison website indicates that Asda, Tesco and Sainsbury’s have not increased the cost of a basket of goods this month — for the first time since January.

New statistics based on 24 basic commodities — such as bread, butter and milk — show that a total of 24 items costs up to 22% more than 12 months ago, which means an average family will have to find an extra £1,040 annually for groceries.

But the year-on-year figure, which has been provided by MySupermarket.com, represents a decrease of around 5% since August, which can be seen as a small but significant step in the right direction on the part of Northern Ireland’s ‘big three’.

But it is also the first discernible reduction in supermarkets’ prices in NINE consecutive months, as the crippling cost of food has continued to spiral.

Speaking to the Belfast Telegraph last night, Consumer Council chief executive Eleanor Gill said the value-for-money watchdog hoped the price reductions were a sign of things to come.

“After a year of rising prices, the indications are that prices are holding or indeed could be falling, albeit a little,” she said.

“This is a step in the right direction and consumers and the Consumer Council want to see the trend continue and sustained into the future.”

The level of price hikes on the staples basket may be at its lowest level for some time, but certain essentials, such as rice, meat and dairy products, are still experiencing massive price rises.

New figures for September show that Basmati rice is up by 121% in 12 months from £0.90 for 1kg to £1.99, while garden peas (1kg) now cost £1.79, up from £0.82 in September last year — a 118% increase.

A (500g) bag of Fusilli pasta has risen by almost 76% (from £0.44 to £0.79), and cheese is also up by a hefty 30% in the past year.

Similarly, customers are paying a massive 57% more for beef mince (500g) — a rise from £1.40 to £2.20 — at the top three supermarkets.

They are also forking out an extra 20.5% for butter (250g) at each of the big grocers, which has risen in cost from £0.78 to £0.94 in just 12 months. Bananas, on the other hand, saw the biggest decrease from £0.85 to £0.77 — a 9% reduction.

All told, a basket of goods now costs £29.57 at Tesco (up 19%), £29.39 at Sainsbury’s (up 22%) and £27.87 at Asda (up 17%).

Website director Johnny Stern said its recently created mySupermarket Food Inflation Index (FII) also shows an overall year-on-year increase of 5.9% on prices of all food and drink products from September 2007, within which staples have risen at nearly four times that rate.

“This shows that our regular purchases are being hardest hit by the rising price of commodities and fuel, so shoppers still need to keep a close eye on what they’re spending,” he said.

“Supermarkets are doing what they can to help consumers and so we would advise shoppers trying to stick to a tight budget to look out for better priced, like-for-like items and special offers within the supermarket you already shop at — there are significant and regular savings to be had to combat the crunch.”

The latest hikes in cost suggest that supermarket food inflation is more than four times the overall rate of inflation, which was yesterday recorded at 4.7%.

From today, two of Northern Ireland’s big players are introducing price cuts in response to disgruntled customers, who feel overwhelmed by the constant battle against the credit crunch.

Tesco will offer a range of 350 products under a new Discount Brands label, including food and other household essentials.

Prices will also be cut on hundreds of existing brands on items across the board.

Similarly, Asda is poised to announce a cut in more than 5,000 food prices.

Gary Mills, stores director for Tesco in Northern Ireland, said the company was cutting prices so that its customers don’t have to shop around.

“We will continue to strive for ways to bring prices down,” he said.

“We want to provide everything under the one roof.

“These cost cutting measures are bridging the gap in our portfolio between value and branded products.”

Asda said that it was reacting to the financial difficulties people are facing, now that their disposable incomes have plummeted due to the rising costs of living.

“Customers are really worried about how to make ends meet and look to supermarkets for help.

“That’s why, when cost prices fall, ASDA will drive down prices for shoppers not just in the short-term but permanently,” said ASDA CEO Andy Bond.

A spokeswoman for Sainsbury’s said they are constantly working with suppliers to offer customers the best deals in their Northern Ireland stores.

“Alongside initiatives such as ‘Feed Your Family for a Fiver’, Sainsbury’s has a huge selection of products on special offers at any one time,” she added.

Hello Neil... Property taxes are about $3200 a year on a $175,000 house... Health insurance is about $250 a month.... But I bought a 2400 sq. ft house with 5 bedrooms and 3 bathrooms for $175,000 in a nice area in Ohio... I can buy a brand new Kia Rio for $7995.. about 4500 quid.. 2 quid for a pack of cigarettes.. 50p a litre for petrol... litre of good vokda for 5 quid.. pair of Levis for 10 quid... a TV dinner for 40p... I just bought a brand new ride on lawnmower for $859.00 about 475 quid... etc...etc..I moved here from Lurgan in 2005 ... gimme here every time!!!!

Posted by Mac | 18.09.08, 00:46 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

Hello Steve - happy to pay US property taxes, roughly equivalent to another mortgage, and US health insurance, same again?

Posted by neil | 17.09.08, 16:17 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

The reality is that anything from buying a new car to going out for a meal costs about twice as much in Britain than in the States. The folks are being ripped off! Simple as.....

Posted by Steve | 17.09.08, 16:00 GMT

Post a complaint

Please note Name and E-mail are required.

Contact details

NiteLife: White's Tavern

Had a big night out? Click here to send your pics

In Pictures: Lingerie Super Bowl 2012

In Pictures: Lingerie Super Bowl 2012

Women: Can you flaunt too much?

Women: Can you flaunt too much?

Old School Pictures: Ian Paisley

Old School Pics: Girls Aloud Nadine Coyle

To launch gallery click image or select school below

Methodist College, Campbell College, Grosvenor,
Bangor Grammar, Dunlambert, St Augustine's,
St Dominic's, Royal Academy, Ballymena Academy

Teletoons by Stevie Lee

Teletoons by Stevie Lee

Follow us on Twitter

In Pictures: The Troubles

Titanic Gallery: First class bedroom

Titanic Gallery: exclusive collection

Out & About: Pizza Night

Out & About: Pizza Night

Columnist Comments

gail_walker

Gritty, moving and heroic...Billy plays captured life here

It was the best of times, it was the worst of times ... Sunday's 30th anniversary screening of the seminal Too Late to Talk to Billy was riveting viewing. But it wasn't nostalgic viewing.
ed_curran

Parties need better defence in Stormont's game of two halves

Surprise, surprise. Peter Robinson has been to his first gaelic match, Martin McGuinness is heading for Windsor Park and the Ulster Unionists have scored another own goal.
nuala_mckeever

Why trying to go on a diet is never really a piece of cake

Some people make New Year’s resolutions, I make lists. Every new year I determine to keep track of everything I spend and everything I eat and drink.

frances_burscough

Scary movie? Their jaws were sore from laughing

Teenage boys love horror films and I have two who are in charge of the remote control in our house, so naturally there’s gore-a-plenty on the box most weekends. However, until recently one film was banned.

Just Born: Readers' Baby Pictures

Just Born: Readers' Baby Pictures

To send Us Your Baby snaps just Click here

Just Wed: Readers' Wedding Pictures

Just Born: Readers' Wedding Pictures

To send Us Your Wedding snaps just Click here

Latest Comments

Belfast Telegraph Home Delivery