Even as inflation rates are easing, many shoppers still feel the pinch in their weekly grocery bill. New data from Kantar Worldpanel, a company which tracks supermarket prices and sales, reveals that the rate of grocery inflation slowed in August to 1.7%, down a modest notch from 1.8% in July. Prices, therefore, remain on the rise, but not at an alarming rate as before. However, most people are still worried about how much groceries will cost them.

Why Are People Still Worried?
While the inflation has cooled down, more than 60% of households report anxiety about grocery bills. Why? Prices keep going up, just less sharply. These people find that their money doesn’t stretch as far anymore, and this becomes the concern of spending day to day.

It’s not only food items that pose concern, another major cause of concern: Home energy bills. These are set to rise again from October, adding to the squeeze on household budgets.

Groceries Are Still Expensive
Meanwhile, grocery prices have gone up, and people have been feeling the squeeze for the past year. The rate of that increase is slowing, but all it means is that prices are still rising. Think of it like hill climbing: when you slow down, you are still going up, just not as fast. That’s exactly what’s happening with grocery prices: they are still going up, but just not as fast. For many families, this climb of a couple of seconds feels like no great relief either.

Inflation, though it has relaxed its grip somewhat, remains a factor in buying habits. More families use inexpensive alternatives, purchase store brands, or do without items, considered non-essential to life styles, that they can no longer afford.

What About Energy Bills?
Not that groceries were not enough to stress about, but energy bills now are to increase again. From the month of October, gas and electricity bills will increase in many households. There are great numbers of families on really thin budgets for grocery items, and it really gets very stressful thinking about heating the homes, keeping the lights on, and cooking meals.

For most of us, saving energy by turning down the heating, taking quicker showers, or changing appliances for more energy-efficient ones may just not be enough to help balance increased costs.

Changing Shopping Habits: How?

As prices go up, so do the changing ways in which people shop. According to Kantar Worldpanel, some surprising changes are happening in our shopping baskets.

More Snacks for School: With the new school term under way, sales of fruit bars and fromage frais – a soft cheese often given to children – are on the rise. Parents are stocking up on snacks that can be easily popped into lunchboxes.

Comfort Foods on the Rise: Oven chips and beer are being purchased more than compared to over 15 years ago. Sales have increased by 44% and 12% for both, respectively, which may indicate people looking for cheaper comforts or simple meals enjoyed at home rather than going out.

What’s Happening with the Big Supermarkets?
Not all supermarkets are suffering equally, however. Asda, one of Britain’s largest grocery chains, has become the biggest loser in market share among all the major grocery retailers. This partly reflects a shift by consumers towards discount stores or other outlets where they perceive they might get a better bargain.

Consumers are being more choosy about where and how they will spend their money, often researching the best value instead of maintaining loyalty to any one store.

What’s Next?
So, what can be expected in the future for grocery prices and household bills? While the latest statistics show inflation is easing, that is not the same as a reduction in costs. Shoppers may continue to feel the squeeze for some time yet. Experts say prices could remain high for some time, and with energy bills about to rise again, households will have to continue thinking of other ways to stretch their money.

Most of them are waiting in hope for further reprieve, perhaps through government intervention or the machinery of fresh policy that would hopefully make life cheaper. Until then, families will continue to change their shopping behavior and cut corners where possible.

Closing Thoughts
Even as inflation cools, the cost of living for many people is still fantastically high. The grocery bills are higher, and soon enough, energy costs will rise again; therefore, there is plenty for households to get their teeth into. Everyone’s trying to save a bit here, a bit there. It’s clear that lots of people feel stretched thin.

But the big question is how long these increased costs will continue and when relief could be realized. Until that time, it is a matter of stretching those pounds.