How Food bills are set to soar by £380 this year

The Bank of England has warned inflation might exceed 11% later this year as the prices of fuel and food put pressure on household budgets.

The latest inflation figures for May are due to be published on Wednesday.Overall supermarket sales are declining, down by 1.9% in the 12 weeks to the 12 June - the smallest fall since October 2021.

Mr McKevitt said: "The sector hasn't been in growth since April 2021 as it measures up against the record sales seen during the pandemic. However, these latest numbers show the market is to an extent returning to pre-Covid norms as we begin comparisons with post-lockdown times."

Kantar said that online sales have continued to fall as lockdown restrictions eased, recording the 12th consecutive monthly fall to leave digital orders down nearly 9% in June.

It said this could be the result of people looking to further cut costs by " avoiding delivery charges" though it added that the recent good weather may be encouraging more people to take a trip to the supermarket. That means shoppers could be paying on average an extra £32 a month for food and other groceries.

Back in April, the firm predicted the cost of the average annual supermarket shop would go up by £271 in 2022.

The upward revision shows "just how sharp price increases have been recently and the impact inflation is having on the sector", said Kantar.

The survey also showed grocery prices rose by 8.3% over the past four weeks, the highest rate in 13 years.

"The inflation number makes for difficult reading and shoppers will be watching budgets closely as the cost-of-living crisis takes its toll," said Fraser McKevitt, head of retail and consumer insight at Kantar.Official figures for April showed overall inflation - the increase in prices over time - was running at 9% a year in the UK - the highest rate for 40 years.

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