Despite a slowdown in UK grocery inflation, the CEO of the discount supermarket chain Aldi UK has pointed out that many Britons are still grappling with the enduring

cost-of-living challenges, now spanning into its second year.

In March, UK food price inflation soared to its highest level since 1977, surpassing 19%. Although official figures indicate a moderation to 13.6% in August, industry data suggests a slightly lower rate of 12.2% in September. Nevertheless, the persistent rise in food prices continues to exert significant financial pressure on numerous households.

"Grocery inflation may be showing signs of easing, but it's evident that people are still feeling the real impact of this situation," remarked Giles Hurley, Aldi CEO, during a press briefing.

Earlier this month, market research firm Kantar released data indicating that 95% of UK consumers remained concerned about the consequences of escalating grocery costs, with this concern only second to their worries about rising energy bills. Additionally, nearly a quarter of the population acknowledged experiencing financial difficulties.

Hurley further shared insights from Aldi UK's 2022 results, revealing that their research conducted with YouGov revealed that three out of four individuals had adjusted their grocery shopping habits due to the mounting living expenses. These adjustments included making fewer trips to the supermarket, diversifying shopping locations among various retailers, and even changing their primary supermarket of choice.

An intriguing shift in shopping patterns highlighted by Hurley was the growing popularity of own-label or private ranges, which are generally more budget-friendly than branded products. He disclosed that own-label products now account for 54% of the UK grocery market's total value, marking a notable increase from the 51% recorded in 2013. This shift translates to a substantial £3 billion ($3.7 billion) increase in own-label sales within just a decade.

It's important to note that a significant portion of Aldi UK's inventory, approximately 90%, comprises own-label items. Photo by  P L Chadwick, Wikimedia commons.