Cost of living: Grocery inflation hits new record high of 17.1%, data shows
UK grocery inflation continued to climb during February to reach a new record high of 17.1%, according to closely-watched industry data.
Kantar Worldpanel reported that the increase over the past 12 months meant that families faced a potential £811 annual rise in the cost of their regular shopping basket.
It had been hoped that a decline in the pace of grocery prices during December would mark a turning point in that element of the cost of living crisis.
But Kantar later revealed that temporary Christmas discounting had been largely responsible, as the big four chains fight to maintain market share amid the challenge posed by discounters and other cheaper rivals.
Its latest report showed that while all of the major stores, with the exception of Morrisons, had expanded sales during the 12 weeks to 19 February, Aldi, Lidl and Iceland had grown their market shares at their expense.
The lure of cheaper own-label groceries saw Aldi achieve a record market share of 9.4% over the period, Kantar said.
Tesco, Sainsbury’s, Asda and Morrisons have expanded their own value offerings given the shift in consumer behaviour driven by the wider cost of living crisis.
Food, along with the cost of many other everyday products, has become more expensive largely due to the surge in energy prices seen since the Russian invasion of Ukraine.
The war can also be blamed for many commodity costs, such as wheat, rising markedly.
While the main rate of inflation has eased from its 11.1% peak seen in October last year, food and other grocery costs have been a major factor behind the CPI measure remaining stubbornly above 10%.
Unilever, which is behind a host of everyday products including Marmite and Magnum ice creams, has been among manufacturers warning that price increases are yet to end.
Please use Chrome browser for a more accessible video player
Unilever boss warns of more price hikes to come
Producers – just one element of a complicated supply chain – are still grappling rising energy bills and other costs.
It also remains to be seen whether the shortage of salad items, which has forced most supermarkets to limit sales, will become a significant inflationary headwind ahead.
Kantar said that the issue came outside of its reporting window but that it expected to reveal a hit when its next report is published.
Its head of retail and consumer insight, Fraser McKevitt, said: “Shoppers have been facing sustained price rises for some time now and this February marks a full year since monthly grocery inflation climbed above 4%.
“This is having a big impact on people’s lives.
“Our latest research shows that grocery price inflation is the second most important financial issue for the public behind energy costs, with two-thirds of people concerned by food and drink prices, above public sector strikes and climate change.
“One quarter say they’re struggling financially, versus one in five this time last year.
“The numbers speak for themselves.”
The UK’s power grid operator has issued a call for electricity providers to bolster output this evening to avert the risk of blackouts.
The National Energy System Operator (NESO) issued an alert “to encourage market actions to increase system margins”.
It was the first such precautionary measure of the winter to date and issued at a time when much of the UK is shivering under sub-zero temperatures.
Money latest: The remortgage boom to hit households
The NESO is worried about a lack of spare capacity in the grid from 4pm until 7pm due to “system constraints”.
The body, which is in public control having been part of National Grid until last autumn, said in an update that it was seeking 1,200 megawatts (MW) of power as part of the so-called system margin notice.
Such notices are a call for a greater safety cushion between power demand and available supply.
The NESO was at pains to point out that it does not signal that blackouts are imminent or that there is not enough generation to meet current demand.
Read more: Why UK energy bills could rise
Please use Chrome browser for a more accessible video player
Sky’s Ed Conway explains why your energy bills look set to rise this winter.
There is strain on the system due to a lack of wind and bitterly cold temperatures, which stoke stronger demand for electricity and gas.
Lows of minus 16C, the coldest of the winter so far, are forecast for parts of the UK on Thursday.
A yellow warning for snow and ice has been issued for northern Scotland and Northern Ireland from noon on Wednesday until midnight on Thursday.
Sub-zero temperatures are expected across the country for the foreseeable future.
It is the first winter the UK has seen in living memory without coal power forming part of the domestic electricity generation mix.
Read more from Sky News:
Rolls-Royce factory expansion to meet bespoke car demand
Basic questions unanswered by Shein as it eyes London listing
Blow to Treasury as long-term borrowing costs soar
The number of such power stations held in reserve was gradually drawn down under efforts to reduce the country’s carbon footprint.
Ratcliffe-on-Soar power station shut down in September.
The UK has reciprocal arrangements with neighbouring countries to draw power via so-called interconnectors if and when required to help keep the lights on.
National Grid data showed that more than 50% of the UK’s power was being generated through natural gas.
Renewables accounted for just 16% while France and Norway were helping provide 10% of output, with nuclear and Biomass accounting for the bulk of the balance.
Piers Morgan, the broadcaster and journalist, is leaving Rupert Murdoch’s British empire to focus on expanding his Uncensored YouTube channel in the US and other international markets, underlining prominent media figures’ accelerating shift away from traditional outlets.
Sky News can exclusively reveal that Mr Morgan and News UK – publisher of The Sun and The Times and owner of Times radio – have agreed a deal that will see him taking ownership of the Uncensored media brand and its existing 3.6 million-strong YouTube subscriber base through his production company, Wake Up Productions.
He is understood to have struck a four-year revenue-sharing deal with News UK that will see the Murdoch-owned company receiving a slice of the advertising revenue generated by Piers Morgan Uncensored until 2029.
Money latest: The remortgage boom to hit households
Mr Morgan returned to News UK in January 2022 with a three-year deal that included writing regular columns for The Sun and New York Post, as well as presenting shows on the company’s now-folded television channel, Talk TV.
People close to the situation said a book deal with the Murdoch-owned publisher Harper Collins would still go ahead, with Mr Morgan expected to complete that project later this year.
He will also continue to write occasionally for News Corporation’s newspapers, according to one insider.
Mr Morgan’s future had been the subject of growing speculation following the expiry of his three-year contract with News UK at the end of 2024.
As part of his new arrangements, Mr Morgan has also signed a deal with Red Seat Ventures, a US-based agency which partners with prominent media figures and influencers to help them exploit commercial opportunities through sponsorship and other revenue streams.
Piers Morgan on TalkTV. Pic: PA
Among those Red Seat has worked with are Megyn Kelly, the American commentator, and Tucker Carlson, the former Fox News presenter.
Mr Morgan is also understood to have received expressions of interest in other commercial and broadcasting deals from American media groups, having been one of few Brits to present his own TV chatshow on a mainstream US network.
Fond of the phrase “One day you’re the cock of the walk, the next you’re the feather duster,” during various phases of his career, his latest deal reflects the shifting dynamics in media consumption.
Responding to an enquiry from Sky News on Wednesday morning, Mr Morgan said in a statement: “I have had a great time working back at News and am delighted that we will continue to be partners.
“Owning the brand allows my team and I the freedom to focus exclusively on building Uncensored into a standalone business, editorially and commercially, and in time, widening it from just me and my content.
“It’s clear from the recent US election that YouTube is an increasingly powerful and influential media platform, and Uncensored is one of the fastest-growing shows on it in the world.
“I’m very excited about the potential for Uncensored.”
Mr Morgan declined to comment on any other aspect of his new arrangement with News UK or his expansion plans ahead of an official announcement, which is understood to be scheduled for later on Wednesday.
His decision to strike out on his own – albeit with a continued relationship with News UK – is said to reflect his belief that broadcast audiences will increasingly shift away from mainstream channels to platforms such as YouTube.
“He thinks YouTube will be a dominant broadcasting platform in terms of audience share within a couple of years,” said one.
It was unclear what the precise revenue split would be between Wake Up Productions and News UK during their four-year partnership.
Read more from Sky News:
Rolls-Royce factory expansion to meet bespoke car demand
Basic questions unanswered by Shein as it eyes London listing
Blow to Treasury as long-term borrowing costs soar
He is expected to focus his efforts to expand Uncensored on US audiences initially, with a wider international plan to follow that.
On Tuesday, Mr Morgan posted on X that he believed an interview with Elon Musk, the Tesla founder who has sparked a firestorm in British politics in recent weeks, was “getting closer”.
Among the other interviewees on his YouTube show have been Donald Trump during his first presidency, the Ukrainian president Volodomyr Zelensky and Cristiano Ronaldo, the footballer.
Rolls-Royce Motor Cars says a record £300m investment at its West Sussex factory base will help expand production of bespoke and electric models.
The BMW-owned firm, like rivals in the luxury sphere, has enjoyed rising demand for personalised vehicles among its wealthy customer base.
The carmaker said recent orders to complement its base models included 18-carat gold sculptures, embroideries consisting of more than 869,500 stitches, wood veneers including 500 individually-shaped pieces and holographic paint finishes.
Money latest: Kicking bad energy habits could save you £119 a year
The investment, Rolls-Royce said, would bolster facilities at Goodwood to cover such requests and also its Coachbuild programme – an invitation-only service where clients get to “craft an entirely original motor car.”
The company added that additional space would also be created to prepare Rolls-Royce for an all-battery electric future, with a new fully electric model due to be unveiled later this year.
Bespoke commissions for 2024 included ‘year of the dragon’ embroidery for one customer. Pic: R-R/Ciaran McCrickard/Mindworks
The £300m investment marked the largest cash injection in the company’s operations since the plant opened in 2003, Rolls said.
It made the announcement while revealing a fall in sales during 2024.
The company sold 5,712 cars in 2024, a drop of more than 5% versus the 6,032 vehicles sold over the previous 12 months.
It said the decline was in line with expectations as it switches over to new models. Four were introduced during 2024 including the Cullinan Series 2 and Ghost Series 2.
Read more from Sky News:
Basic questions unanswered by Shein despite firm eyeing London listing
Blow to Treasury as long-term borrowing costs highest this century
North America was its largest market in 2024. The most popular model, it said, was the all-electric Spectre.
Goodwood employs 2,500 people and produces 28 cars daily, it added.
Recent workforce expansion has been a result of its high margin Bespoke and Coachbuild programmes but also the transition to electric technology.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports9 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway