Energy costs and drought take their toll



Grocery prices have increased by 0.75% since we last reviewed our Price Index three weeks ago.

The price of our secret basket of 100 goods, compiled by retail research specialist ESA, now stands at £175.84 , its second-highest point in the past year.

The year's high was recorded in June when the price of our index basket was £176.81. The 0.75% increase in a relatively short period is significant as it represents a quarter of the 3.3% total increase in the index over a 52-week period.

Looking more closely at the product categories, fresh fruit and vegetables have accounted for a portion of the increase as rising energy costs and droughts have taken their toll.

Several bakery products have also increased in price as a weak harvest has forced the leading millers to increase the price of flour.

Somerfield costlier than Waitrose



Asda is the only supermarket in the latest The Grocer 100 survey that managed to reduce its prices in the past six months. Asda shaved its basket price 0.4% from £172.05 to £171.35. Tesco, the clear leader six months ago, has drawn closer to Asda in the past month, after price-cutting has reduced its basket price from £173.89 three weeks ago to £173.44 now.

At the other end of the spectrum, Somerfield has struggled to keep the lid on prices in the last month and has slipped behind Waitrose into last place, with the highest price. Somerfield had managed to cut its basket price to £196.25 when we last reviewed the index, but since then its basket price has jumped up to £200.60, the highest level in the past six months.

The other four supermarkets in our price survey have all succumbed to the prevaling wind of price increases from a six month prespective .