Tesco has announced an increase in the price of its lunchtime meal deal, reflecting ongoing trends in food price inflation in the UK. As of Thursday, the cost for Clubcard holders has risen from £3.60 to £3.85, while those without a loyalty card will see the price go up from £4 to £4.25. The meal deal, which includes a main, a snack, and a drink, had been priced at £3 for a decade prior to a previous increase in October 2022, during a period of significant food price inflation.
Reports indicate that certain items included in the standard meal deal could individually exceed £8 if purchased separately. Additionally, the price for Tesco’s premium meal deal has also risen, increasing from £5 to £5.50 for Clubcard holders and from £6 for non-members.
Recent inflation data shows that food and non-alcoholic beverage prices rose by 4.9% in the year leading up to July. Over the past five years, food prices have increased by approximately 37%, a stark contrast to a 4.4% increase observed in the previous five-year period.
In light of these inflationary pressures, Tesco, along with other retailers, has reached out to Chancellor Rachel Reeves, cautioning that any potential new taxes in the upcoming Autumn Budget could lead to even higher prices for consumers. The British Retail Consortium, which sent the letter, stated that retailers have been striving to shield customers from inflation but are now finding it increasingly difficult to absorb rising costs. These costs have reportedly been exacerbated by changes in National Insurance contributions and new packaging taxes, totaling an estimated £7 billion for the retail sector. The Bank of England predicts that these factors may add 1% to 2% to food prices and expects food price inflation to peak at around 5.5% by the end of the year, before declining to between 2% and 3% by 2026.
Source: https://www.bbc.com/news/articles/clyr7renp51o?at_medium=RSS&at_campaign=rss