Bread had increased by 29 per cent from 45p to 58p. The cost of canned spaghetti was up by 169 per cent, while the price of a bag of small apples had increased by more than half.
Monroe highlighted that for people already forced to rely on supermarkets’ budget options, sharp price hikes had a proportionally much larger impact on the costs of essentials than more expensive meals – and meant cutting down people’s budget food options even further.
In response to the public’s concern – and with the cost of living crisis set to worsen in the coming months – the ONS announced it would change how it measures the everyday costs of households.
The organisation will “transform” the way it measures prices in the long term, with plans to increase the number of price points analysed from 180,000 to into the hundreds of millions using prices sent directly from supermarkets. This will track the prices of every variety of one item, and how many people are buying each, to understand the real impact of inflation on shifting household budgets.
“If one variety of apple goes up in price while another apple falls, do some people switch varieties to avoid a price rise?” said Mike Hardie, head of inflation statistics for the ONS. “And given that people of different means undoubtedly buy different varieties of products, what happens to the price of own-brand versus branded baked beans?”
The ONS produces headline inflation rates every month by collecting the varying prices of more than 700 everyday goods and services bought frequently across the UK, ultimately analysing more than 180,000 price points alongside spending patterns.
It paused this kind of analysis – which meant looking at how the cost of living was rising differently for different demographics – during the pandemic, because supermarket shelves were empty and so many products indefinitely unavailable.
But these methods will now be reintroduced from Friday, the ONS said. This will mean analysing the same 700 products and services, but considering their findings alongside a range of different ways households spend their money.
The statisticians have observed huge price increases in some smaller items, Hardie explained, but their impact on headline inflation figures is limited compared to that of fuel bills and transport.
“The average annual rate of inflation can conceal a lot,” he said. “When you are regularly collecting 180,000 prices, you will observe a lot of variety. And over the past few months, there have been some large changes.
“Some items such as ‘fruit drinks’ and ‘low-fat spread’ experienced annual price increases of over 30 per cent on average in December, and when analysing the individual price quotes it’s not uncommon to see price changes of over 100 per cent for some items.
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this autumn.
“Everyone has their own personal inflation rate,” Hardie added. “Some people may spend a larger proportion of their income on gas and electricity, or petrol if you commute via car daily.
“That said, when we have broken these data down in different ways, such as according to how much income you earn or whether you own or rent your property, the differences have been historically small.”
Jack Monroe was “delighted” by the announcement, adding: “And as for the large corporations paying poverty level wages to their employees, meaning that people who stack the supermarket shelves often can’t afford to purchase the products from them, don’t think you’re getting off lightly. The spotlight is swivelling onto you soon and all.”
