Rising food prices are consumers’ biggest worry over the financial impact of the war in Ukraine after fuel and energy costs, research reveals.
Some 30% of British consumers believe the conflict will have a “major effect” on their household finances and the level of concern is growing fast, according to a survey of 1,000 people by Mintel. In March, 61% thought it would have some impact on their finances – a figure that had hit 71% by April.
Mintel conducted similar research in France, Italy, Germany, Spain and Poland, and also found concern over food prices was growing faster here than anywhere else.
At the beginning of March, 53% of British people thought the conflict would lead to increased food and drink prices, climbing to 63% by the beginning of April. Stock shortages are also a growing concern, worrying 34% of people in March and 41% by April.
New ONS figures this week will have done little to ease concerns, revealing inflation continued to soar higher last month as both petrol and food prices rose sharply.
CPI inflation was 7% in the 12 months to March – its highest rate since March 1992, and up from 6.2% in February.
Food and non-alcoholic beverages remained below the headline rate of inflation but were up by 5.9% in March. Alcoholic beverages and tobacco rose 4.8%.
Inflation is expected to soar even higher this year, thanks to energy bills rocketing in April.
Mintel said the situation was likely to turn more shoppers to the discounters, with 30% saying they would switch to lower-cost retailers to make necessary household budget savings in the cost-of-living crisis.
It said sustainability issues were likely to be dropped by the wayside by consumers as they adjusted priorities, especially where availability and choice were reduced as a result of the conflict.
“Issues such as sustainability are at risk of being pushed down the list of concerns as consumers are presented with reduced product ranges and price becomes increasingly important,” said the report for The Grocer.
Consumers’ biggest concerns – fuel and electricity costs – worried 72% and 69% respectively.
No comments yet