Food prices in the U.K. were steady in the last three months but "shrinkflation" is hitting consumers' pockets.
Grocery inflation in the U.K. held steady at 3.2% for the 12 weeks to July 16, according to data released Tuesday, July 25, by Kantar Worldpanel, the same rise as the previous 12 weeks, while supermarket sales increased 3.9% in the period marking the fourth consecutive period of where growth exceeded 3%.
"Robust market growth this year has been boosted by higher grocery inflation, but consumers will be pleased to hear that price rises are no longer accelerating," Kantar Worldpanel Head of Retail and Consumer Insight Fraser McKevitt said in a statement. "Like-for-like inflation now stands at 3.2%, the same rate of increase as this time last month."
But as food inflation seemingly eases British consumers are having to deal with so-called shrinkflation, where manufacturers charge the same price but reduce product size.
The Office for National Statistics found that 2,529 products have decreased in size between January 2012 and June 2017, compared with just 614 products that had.
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