Hao Jiaqi, a trainee reporter from Southern Finance and Economics, reported from Shanghai
On August 17, local time, data released by the UK Office for National Statistics (ONS) showed that in July this year, the UK consumer price index (CPI) rose by 10.1% year-on-year, lower than the previous value of 9.4% and the expected 9.8%, the highest since 40 years. Highest record. Among them, the core CPI excluding energy, food, alcohol and tobacco rose 6.2% year-on-year, compared with the expected 5.9%.
Grant Fitzner, chief economist at ONS, pointed out that higher food prices were the main reason for the increase in the CPI in July, indicating that inflationary pressures in the UK are spreading to areas other than energy. Specifically, the prices of baked goods, dairy products, meat and vegetables rose significantly.
Soaring food prices have led to changes in the consumption habits of British residents, and consumers have gradually begun to seek more affordable products and cheap self-owned products from major supermarkets. At the same time, as high inflation hits low-income groups even harder, it further widens the gap between the rich and the poor in British society.
Residents’ consumption habits have changed
According to a report released by the British market research group Kantar, the average weekly spending of British consumers on food purchased in supermarkets in July increased by 11.6% year-on-year, and the average annual food expenditure per person is expected to rise by 380 pounds.
In addition, sales research firm Assosia has tracked the prices of more than 40,000 items of food and beverages sold by the four major supermarket chains in the UK. The survey found that since June last year, the prices of more than 20,000 items have been raised to varying degrees. For example, The price of Heinz ketchup jumped 35%, while the price of Actimel yogurt rose 9%.
A Manchester resident told reporters that the price of meat in supermarkets has risen significantly. In recent months, the price of a kilogram of boneless chicken thighs has risen from 3.99 pounds to 4.29 pounds, and the price of 180 grams of sea bass has risen from 2.99 pounds to 3.19 pounds. In addition, the prices of Angus beef and mutton have also risen to varying degrees, and the proportion of monthly food expenditures has gradually increased.
Rising food prices have quietly changed the consumption habits of British residents. In many supermarket chains in the UK, consumers have gradually begun to seek more affordable products.
Sales at budget supermarket chains Aldi and Lidl rose more than 10%, on top of which almost all major supermarket chains, including the UK’s two largest supermarkets Tesco and Sainsbury’s, saw retail sales fall.
The reporter learned that the price of 500 grams of Heinz ketchup in Aldi and Lidl is only 1.92 pounds, while the price of Tesco and Sainsbury’s is 2.2 pounds and 3.36 pounds respectively; in addition, 500 grams of seedless grapes are priced at 1.75 pounds in Aldi and Lidl , over 2 pounds at Tesco and Sainsbury’s.
Affordable supermarkets, which are favored by consumers, have naturally gained more profits. Take Aldi as an example. In recent months, its market share has increased by 0.9 percentage points to 9.1%, and is about to replace Morrisons as the UK’s No. Four major supermarket chains.
However, sales at Waitrose, a high-end supermarket aimed at middle-class consumers, known as Britain’s “aristocratic supermarket”, fell significantly; Tesco and Sainsbury’s also said their profit margins were squeezed by rising costs; Morrisons The report released on the 17th showed that its sales in the last quarter fell by 6.4% compared with the previous period.
On the other hand, soaring food prices have consumers looking to supermarkets for private label items. The reporter found that almost all large supermarket chains will launch their own brand products with relatively low prices to increase profits. The price of Tesco’s self-produced tomato paste is 0.65 pounds/500g, which is only 1/5 of the price of Heinz tomato paste; in addition, its self-produced baked beans are only half the price of the same weight of Heinz baked beans. It is reported that every British family can save 542 pounds a year by purchasing goods produced by the major supermarkets.
In a research report, Aldi said that sales of private label items in the four major British supermarket chains rose by 2.9% in the past month due to the shift in consumer spending habits, while sales of other mainstream brands were different to varying degrees. Decline. Heinz had previously stopped supplying Tesco with some products, including ketchup and baked beans, and said it would fight “unfair” competitive practices due to the encroachment on profit margins. In response, Tesco responded that in the face of rising living costs, the existence of cheap independent brands is “reasonable”.
The gap between the rich and the poor further widens
It is worth noting that rising food prices have different impacts on different consumer groups. On August 17, data released by the ONS showed that as of June this year, the inflation rate of low-income households in the UK was 8.7%, which is much higher than the 7.8% of high-income households.
The ONS has warned that the cost of living crisis is “unfair”, hitting lower-income groups harder and widening the gap between rich and poor.
Wang Zikui, an assistant researcher at the Institute of International Studies of the Shanghai Academy of Social Sciences, said in an interview with a reporter from Southern Finance and Economics that, in fact, the soaring prices of commodities such as energy and grain will eventually be transmitted to the daily life of residents, which is reflected in their daily life. rising consumer costs. At present, the impact on the British middle class is not obvious, but for people with unstable employment and weak economic foundation, the surge in food prices is not a small problem.
In this regard, British Security Minister Rachel Maclean said that in response to soaring energy and food prices, the government will provide further assistance measures to low-income groups. However, there are still differences in the British cabinet on how to raise this huge social security fund. At the same time, Maclean suggested that lower-income groups in the UK can take better care of themselves, with the option of taking more jobs or looking for higher-paying jobs.
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