CONSUMERS have been faced with "shocking" price hikes of more than 20 per cent on hundreds of popular items over the past two years which are putting increasing pressure on household budgets.

New research has suggested a drop in the availability of supermarket discounts and budget ranges compared with two years ago as the cost of living crisis continues to bite.

It found that the price of 265 groceries shot up by more than a fifth over the last two years.

The investigation by the consumer organisation Which said a list of items included Kellogg’s Crunchy Nut Corn Flakes Cereal 500g which increased by 21.4% in price at Tesco, Asda’s Own Label Closed Cup Mushrooms 250g up 21.4% and Cathedral City Extra Mature Cheddar 350g which rose by 21.1% at Ocado.

The watchdog analysed the prices of more than 21,000 groceries over two years, comparing their average prices at eight major supermarkets between the start of December 2021 and the end of February 2022 with the same period two years previously.

Across 20 categories of groceries, fizzy drinks saw the biggest average price rise at 5.9%, followed by butters and spreads (4.9%), energy drinks (4.8%) and milk (4.6%).

Groceries with the lowest inflation included chocolate (1.4%), fresh fruit (1.6%), biscuits (1.8%) and vegetables (1.9%).

Prices have been rising at the fastest rate in 40 years as inflation in the UK was confirmed to have hit 9% last month.

The increase means inflation is at its highest level since comparable readings in 1982.

But according to official figures sales of alcohol, tobacco and summer clothes drove an increase for retailers last month, despite many being forced to hike their prices.

Customers flocked to supermarkets to buy more cigarettes and alcoholic drinks, but spent less in non-food shops.

The UK’s retail sector saw a 1.4% rise in sales over the month, after contracting in March, data from the Office for National Statistics (ONS) show.

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The Which study also found that across different supermarkets there have been fewer discounts, limited availability of own-label budget ranges and products decreasing in size but remaining the same price over the same period.

The number of promotions fell across every one of the 20 categories the watchdog studied, including the number of discounts on bottled water down 14.7% and on vegetables down 11%.

Meanwhile, the size of savings in promotions that did still happen were also cut in three quarters of the categories. This was most pronounced for butters and spreads, where the size of savings fell by 3.6% over the two years, followed by vegetables (3.5%) and crisps (2.9%).

Examples of 'shrinkflation' - reducing the size of product while maintaining the original price - included Nescafe Azera Americano decaffeinated instant coffee shrinking from 100g to 90g and Walkers Classic Variety crisps dropping from 24 bags in a multipack to 22 bags.

The investigation also found that own-brand budget ranges - which have seen the lowest level of inflation at just 0.2% compared with 3.2% for own-label premium ranges - have become less available.

Budget own-brand items were unavailable on three times as many days during the most recent three-month period than two years previously, according to the study.

Of the 20 product categories, own-brand cheese was out of stock the most at 17 days in 2022 compared with six days in 2019.

The consumer organisation is calling on supermarkets and manufacturers to provide clear unit pricing to allow consumers to easily compare and choose the best value items, such as cost per 100g or 100ml, and ensure that budget items are readily available.

Sue Davies, Which head of food policy and consumer rights, said: "Our research reveals that eye-watering price rises are being exacerbated by practices like shrinkflation and limited availability of all-important budget ranges - and these factors are combining to put huge pressure on household shopping budgets.

"During an unrelenting cost-of-living crisis, consumers should be able to easily choose the best value product for them without worrying about shrinkflation or whether their local store stocks budget ranges."

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A Tesco spokesman said: "We are committed to providing great value for our customers, whether it's promising 'Low Everyday Prices' on 1,600 staples, price matching around 650 basics to Aldi prices, or offering exclusive deals and rewards through thousands of Clubcard prices."

The ONS said that their figures still show a continued longer term downward trend in retail sales.

“April’s rise was driven by an increase in supermarket sales, led by alcohol and tobacco and sweet treats, with off-licences also reporting a boost, possibly due to people staying in more to save money," said Heather Bovill, deputy director for surveys and economic indicators.

“Clothing sales had a strong month, especially online, with some retailers suggesting consumers were purchasing clothes for summer holidays and weddings.

“The proportion of online sales crept up a little this month, but despite this increase have predominantly fallen since their peak in early 2021, although they remain well above pre-pandemic levels.”

The rise did not stop a 0.3% drop over the three months to April, but comes in the face of rising prices.

The most recent inflation figures showed a massive spike in the cost of living, especially in April as energy bills spiked.

Measured by the Consumer Prices Index (CPI), inflation hit 9% in the year to April.

David Baker, chief investment officer at consultancy Mazars, said that retailers who are being forced to pass on their increased costs to customers will be somewhat reassured by April’s figures.

“The reading contradicts recent consumer confidence data and suggests that near full employment and the ability of consumers to tap into savings accrued during the pandemic may be preventing shoppers becoming overly cautious despite the cost of living challenges associated with high levels of inflation,” he said.