THE ECONOMIC TIMES

Analysing The Political Economy


Cost-of-Living Crisis Bites Into Meat and Booze Sales

British households are feeling the cost-of-living strain already. This is evidenced by the amount of average savings draining away alongside credit card debt that is soaring faster than ever.

In addition, last week the Office for National Statistics published its research that confirmed 4 in 10 households were now unable to pay their energy bills and that nearly 50 per cent had had noticedable incraes in the cost of the weekly food  shop.

More evidence of this strain comes as market research firm NielsenIQ reveals that shoppers are now purchasing less meat, fish and poultry in a bid to save money amid the cost of living crisis.

According to NielsenIQ, volume sales of meat, fish and poultry decreased by 13% in the four weeks to 23 April year-on-year. The figure also fell by 7.8% year-on-year on a value basis, demonstrating that UK shoppers are reducing their purchases in this category.

The news comes as food CPI has reached 5.9%, the highest since December 2011.  Soaring prices have caused the biggest squeeze on UK household incomes, the highest since at least the 1950s with consumer confidence plummeting.

DEFRA Minister George Eustice also explained that things got “harder” with chicken, poultry and some fresh produce where rising costs of feed end up “passed through the system because these people work on wafer-thin margins and they have to pass that cost through.”

Co-op CEO Steve Murrells also noted that “chicken could become as expensive as beef” as poultry which is, “incredibly cheap and great value for money, is rising quicker than any other protein.”

Consumer sentiment has dramatically worsened amid media warnings that inflation will keep rising and that energy bills will go up by another £800 this autumn as the price cap increases again.

Cutting back on groceries, school supplies and medicines is the most common way for people to make ends meet in an attempt to beat the cost-of-living crisis.

 

 

 

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