Food Prices Surge for Low-Income Households Amid Cost of Living Crisis

New research from the Institute for Fiscal Studies (IFS) reveals that food prices for lower-income households have risen significantly faster than for wealthier families during the ongoing cost of living crisis. While overall food inflation reached 15.8%, the cheapest 10% of food items saw a staggering increase of 36.2%. This disparity has resulted in poorer households spending a larger portion of their income on food, leading to an additional £100 in annual expenses compared to their higher-income counterparts. The IFS highlights a phenomenon termed "cheapflation," where the prices of budget-friendly grocery items, such as pasta and butter, have surged disproportionately. Between 2021 and 2023, poorer households experienced a 29.1% increase in food costs, while wealthier households faced a 23.5% rise. This inflation has been exacerbated by post-pandemic supply chain issues and soaring energy prices following Russia's invasion of Ukraine. Despite these findings, the Office for National Statistics (ONS) has not yet reflected this trend in its data, stating that the prices of the cheapest items have aligned with average prices. However, the ONS plans to utilize supermarket scanner data starting next March, which may provide a clearer picture of grocery price changes. The IFS warns that if the poorest households had experienced the same inflation rates as the wealthiest, their food bills could have been reduced by £100 annually. This unprecedented inflation gap underscores the financial strain on low-income families, prompting a shift towards cheaper grocery options as they navigate the economic challenges.