While our eighth anniversary shop of The Grocer 33’s original basket (right) shows that supermarket prices are cheaper than they were in 1997, our own inflation tracker above shows that prices have risen by 0.9% over the past 12 months.
The Grocer Price Index monitors the prices of 100 commonly bought grocery items stocked by the big four multiples.
Prices are collected by retail and trade research specialist ESA, which then produces an industry average allowing us to monitor how prices are changing across the industry.
The graph above shows that, during the second half of 2004, there was a strong deflationary trend across the industry.
Prices fell by 1.8% in the four months to November 2004. However, this was followed by a sharp rise after Christmas.
Despite claims by the multiples around the New Year period of huge price-cutting initiatives, the Grocer Price Index rose 2.5% between January and February.
From their peak in February, there followed three months of falling prices before, once again, we saw a rise in the past month.
The Grocer Price Index will become more important in future as we will now be able to compare year-on-year price fluctuations.