We analysed the prices of almost 26,000 food and drink products at eight major supermarkets to see how individual product prices are being affected.
This month, we focused on branded products, which - despite having a lower rate of year-on-year inflation (12.2%) than own-brand standard ranges (14.6%) and budget ranges (24.3%) - tend to cost more overall.
Read on to find out which products have been hiked by the most eye-watering amounts, and how you can help Which? in our campaign to make life easier for shoppers.
Exceedingly expensive cakes
We looked at prices at the UK's eight largest supermarkets – Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose - and found that the branded product with the single largest price increase was Mr Kipling Chocolate Slices (6 pack) at Tesco. These went from £1.16 on average in the three months to the end of July 2022 to £2.66 in the same period this year - a shocking increase of £1.50 or 129%.
Similarly, Mr Kipling Bakewell Cake Slices (6 pack) at Sainsbury’s went from £1.38 to £2.75, an increase of £1.37 or 99%.
At Asda, it was a branded yoghurt that saw the worst year-on-year inflation, with Lancashire Farm Natural Yogurt (1kg) and Lancashire Farm Fat Free Natural Yogurt (1kg) going from £1 to £1.80 - a hike of 80%.
Meanwhile at Morrisons, Pilgrims Choice Extra Mature Grated Cheddar (180g) and Pilgrims Choice Sliced Extra Mature Cheddar (150g) both went from £1.20 to £2.11, a hike of 76%.
It's up to supermarkets to decide how much they charge for branded goods. Food prices have been impacted by increased costs on animal feed, fertiliser and fuel as well as energy and labour - and poor harvests, bird flu and a weaker pound have made matters worse.
Find out more:What's happening to overall supermarket food inflation?
Which?’s inflation tracker found that year-on-year supermarket food inflation has dipped, this time from 15.4% in the one month to the end of June to 13.8% for the one month to the end of July.
However, we also looked further back, comparing current prices against two years ago, to give a better picture of the true extent of inflation since the cost-of-living crisis began. Prices were up 25.6% in the three months to the end of July 2023 compared with the same period in 2021.
This month there were notable falls in inflation for products like milk and butter, which have been subject to well-publicised price cuts in recent months. The rate of inflation on butter and spreads in July was 6.3%, compared to 10.9% in June. Similarly it was 14.1% for milk in July compared to 19% in June.
However, in both cases, prices are still significantly higher than what shoppers were paying before the cost-of-living crisis, showing the challenge many shoppers are still facing to afford everyday essentials.
Sue Davies, Which? Head of Food Policy, said: 'The scale of price hikes to some branded products at the supermarket over the last 12 months is barely believable and highlights the huge pressure faced by shoppers, especially families and those on low incomes.
'With food prices expected to remain high for the rest of the year, Which? is calling on supermarkets to ensure expensive convenience stores are stocked with a range of budget items that support a healthy diet - and setting key tests that they can work towards to show they are willing to make a meaningful difference for their customers most in need.'
Find out more:Why are budget groceries so important?
Even with inflation slowing, food prices are expected to remain high for the rest of the year according to the Bank of England, with speculation from its chief economist that prices will never return to pre-pandemic levels.
Over half (57%) agreed that more budget ranges in convenience stores would help them.
In July, the Competition and Markets Authority also highlighted that consumers relying on convenience stores - which it agreed were more expensive - cannot adequately benefit from competition to the full extent of those with access to large supermarket stores.
Which? puts pressure on supermarkets to ease the pain for shoppers
Which? has been calling on the big supermarkets that also operate convenience stores to stock essential budget-range items in their smaller stores. Today, we have launched a 'Budget Range Benchmark' - a set of key tests that we believe will show whether supermarkets are willing to do this in a way that will genuinely make a difference.
Our Budget Range Benchmark calls on Tesco, Sainsbury’s, Asda and Morrisons to urgently stock budget-line items in their convenience stores, prioritising the areas most in need. It says these budget groceries should be:
Wide-ranging: Affordable:Easy to find:Morrisons has already begun to implement the initiative, setting an example for others to follow.
Tesco has also announced that it will be introducing cheaper own-brand items in convenience stores. Which? believes this is a significant step in the right direction and will save Tesco Express customers money. However, the product examples Tesco has given are not the cheapest options the retailer stocks in its larger stores.
Which? is calling for all supermarket-owned convenience stores to provide products from their budget ranges, as these are generally much cheaper than supermarket own brands.
Find out more:Which? Affordable Food For All Campaign
Our Affordable Food For All campaign calls on supermarkets to do more to ensure budget-range items are widely available throughout all branches – including in smaller convenience stores. They should also make pricing and offers more transparent.
So far, almost 110,000 people have signed Which?’s petition calling on the supermarkets to take action.
Do you want to see your supermarket take action to support you through the cost of living crisis? undefinedsource https://www.which.co.uk/news/article/food-inflation-remains-high-as-some-branded-groceries-soar-by-up-to-130-agfdG4r1a3FU