The cost of living issue, which is now in its second year, is still affecting many Britons even if grocery inflation in the UK is declining, according to the head of budget retail chain Aldi UK on Monday.
Inflation of UK food prices peaked in March at above 19%, its highest level since 1977. Despite the fact that this official indicator decreased to 13.6% in Aug and 12.2% in September according to industry statistics, rising food costs continue to put a significant pressure on many people’ finances.
According to Aldi CEO Giles Hurley, “while supermarket price inflation is beginning to ease, it’s obvious that people are still really feeling the effects of it.”
Market research firm Kantar said earlier this month that its data revealed that 95% of British consumers were still concerned about the consequences of rising food prices, second only to their anxiety about energy expenses, and that just under 25% of the population felt they were experiencing financial difficulty.
Hurley stated this after Aldi UK released its 2022 results: “Our own investigation with YouGov informs us that three in four individuals have changed their food purchasing habits due to raised cost of living, which makes fewer trips to shop, shopping with numerous supermarkets, and changing their main supermarket altogether.”
He emphasized how the popularity of private, or own-label, ranges—which are typically less expensive than branded goods—was a significant shift to what Britons are currently buying.
According to him, the value of the own brand market in the UK has increased from 51% in 2013 to 54% in 2018. This is a 3 billion pound ($3.7 billion) rise in sales in just ten years.
90 percent of Aldi UK’s product selection is owned brands.