“Price increase” expected despite fall in average basket prices

Grocery comparison website MySupermarket has revealed that average basket prices fell last month, as the continuing price war offset inflating prices.

An average basket price, which consists of 35 of the UK‘s most purchased items, fell from £82.15 to £81.93 over April.

The basket was also 85p cheaper compared to last year.

Despite the overall decline in cost of an average basket, 19 items were found to be more expensive compared to just 13 that fell in price.

READ MORE:  Inflation remains steady in March

Fruit and vegetables. including bananas and peppers, fell by 1.5 per cent and four per cent respectively,  but items like fish fingers and breakfast cereal climbed 1.6 per cent.

“Although the changes to the basket price are minimal, we are seeing a trend in the products that are continuing to increase month on month,” MySupermarket chief executive Gilad Simhony said.

“The price competition between supermarkets is at an all-time high, and this is pushing many prices down as many retailers are using fruit and vegetables as a loss leader.

“We do expect to see a price increase in many of the ambient products in the coming months as manufacturers pass on the increase in costs they have been facing to the  consumers.”

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