A large tub of Lurpak is now close to £10 in one major supermarket, it was revealed today, as it emerged shops have started putting anti-theft devices on staples such as cheese, meat and baby milk because they are classed as ‘high value’.
Shoppers used social media to upload photos of security tags. £3.99 blocks of Aldi cheddar and £8 Co-op lamb chops in Wolverhampton because people are stealing them due to the cost of living crisis.
Tesco fitted security tags onto large baby milk containers at Tesco Extra, Streatham. This was after Sainsbury’s had started marking tubs with Aptamil infant, toddler, and follow on milks.
Anti-theft devices were added to products that experienced significant price increases in the past 12 months. And with food inflation now running at more than 11 per cent, a 1kg pack of Lurpak is being sold in an Iceland for an extraordinary £9.30. One shopper was banned from going into any Co-op store in Cambridgeshire today after he stole meat, washing up products, coffee and ice cream worth more than £460 from three stores.
Data from comparison site trolley.co.uk has revealed that a standard 500g pack of Lurpak is up around £2.25 to £5 in the past year and is also being security tagged. Sainsbury’s is selling a 750g tub of the popular spreadable butter for £7.25 – up from £5.90 in recent months.
Co-op spokesmen said they justification of putting labels on more food items. “Co-op participated in a small-scale trial of new packaging to higher-value products for over a year. The additional security provides a further deterrent for any shoplifting problems.”
It came after the boss of Sainsbury’s warned today that pressure on household budgets ‘will only intensify over the remainder of the year’ amid the worst inflation crisis in the UK since the 1970s. Due to an impasse with US food producer Heinz over rising prices, Tesco runs out of Heinz baked beans.
In Iceland, a 1kg pack of Lurpak slightly salted butter is being sold for £9.35. At Ocado, the only other major supermarket where that size is on sale, it is priced at £9
Photos posted to social media showed £3.99 blocks of cheddar on shelves in Aldi, and lamb chops in Wolverhampton, with electronic tags fitted to them (pictured)
Another image showed a 750g pack of Lurpak butter with a security label on it at Sainsbury’s (pictured)
Tesco added security labels to baby milk tubs. Cans of the formula milk – some of which were priced at £15 – are being protected at Tesco Extra in Streatham, south London
Data from trolley.co.uk shows that the cost of Lurpak (top image), Aptamil, cheddar and lamb are all up across the board at major supermarkets in the past year
Simon Roberts, the group’s chief executive, stated that they are working to cut costs throughout their operations in an era of inflation.
‘We really understand how hard it is for millions of households right now and that’s why we are investing £500 million and doing everything we can to keep our prices low, especially on the products customers buy most often,’ he said.
“The financial pressures on households will increase in the coming year. I know that it will be more difficult for us to do the right thing for both our clients and our colleagues.
Sainsbury’s Lurpak Butter is sold at an astronomical price. However, many competitors are selling it for much less. Tesco is selling the same pack for £5.30, whilst Asda, Iceland and Ocado are selling it for £6.
Luxury butter, which was created in Denmark in 1901 has now become an essential part of millions upon millions of American households. The high price per pack could soon turn families off.
It comes as the world is facing the greatest cost of living crisis since 1973, which has been exacerbated in recent years by high inflation. Experts are warning that more may be coming.
Sarah Coles from Hargreaves Lansdown’s finance company said that household financial pressures are “laying waste” to the extra resilience that Britons have built during the pandemic.
Today’s Twitter user posted images from Aldi’s Protected Cheese and Co-Op Boxed Meat.
Above the photos, they said: “If Lurpak is bad, the Aldi or Coop have begun security tagging food. There was a GPS protected tag on a pack of lamb chops as well #ThisMorning #CostOfLivingCrisis’.
After a string of thefts, Tesco staff believed they were required to safeguard baby milk products.
These tags are controlled by a transmitter, which sounds an alarm when the tag is taken from a shop.
They’re usually taken out by the staff after customers have paid at the till.
In the face of rising living costs, there are concerns that struggling moms and fathers may turn to crime to feed their children.
Tesco’s spokesperson declined to comment.
Sainsbury’s this week revealed that like-for-like sales, excluding fuel, declined by 4 per cent over the 16 weeks to June 25, compared with the same period last year.
After a string of thefts, Tesco staff believed they were required to safeguard baby milk products. A transmitter sounds an alarm when the tag is taken from a store.
Wolverhampton Twitter user points out the security tags found on Aldi cheese and Co-Op lamb chops. They wrote: ‘If you think Lurpak is bad – the local Aldi and Coop have started security tagging food. The GPS tag that was attached to a package of lamb chops also #ThisMorning #CostOfLivingCrisis was protected.
Another user on Twitter pointed out the outrageously high price for a Lurpak pack in Sainsbury’s at 750g. This luxury butter brand was first made in Denmark in 1901 and has been a staple in millions of homes across the nation.
Sainsbury’s celebrated a “good” performance of its grocery business. Sales fell 2.4% compared with last year’s levels, which was aided by pandemic restrictions in other areas.
Simon Roberts from Sainsbury has stated that the pressure on households budgets “will only intensify in the remaining months of the year.”
According to the retailer, its “improved value” has made it more competitive against its competitors. The group invested heavily in improving prices through campaigns like Sainsbury’s Quality Aldi Price Match.
The company stated that sales were particularly high around Jubilee Week, when beers, spirits, and wines saw the highest levels outside of Christmas, Easter and Pimm’s. Sparkling wine, champagne, and Pimm’s also sold well.
Significant slumps in clothing and general merchandise, including Argos brands, contributed to the overall sales drop.
Argos sales declined by 10.5 percent over that period. It said this was due to a severe slump in the first five week.
A group report also showed that fuel sales increased by 48.3 percent over this period. This was due to an increase in petrol and diesel price.
Roberts stated that he was working to cut costs throughout the company in order to continue investing in areas customers are most passionate about.
“Our increased grocery volume market share is evidence of the improvements we’re making in value, quality and service.
Ms Coles, senior personal finance analyst at Hargreaves Lansdown, warned today: ‘The cost-of-living crisis is laying waste to the extra resilience we managed to build during the pandemic.
It’s a huge problem for people with low incomes, making it difficult to keep track of finances. This is not just creating huge problems for them right now; it’s also building their future.
Hargreaves-Lansdown research has shown that 41 percent of households have borrowed money or put their savings to meet the cost of living in recent months.
After inflation has been taken into account, the report showed that disposable income dropped by 3 percentage points in the last three months.
It comes after it emerged a typical family of four’s shopping bills could rise as much as £40 per month in the latest pinch on domestic finances as essentials such as bread and dairy look set to rise.
The staggering price rise doesn’t stop with dairy products.
Recent Retail Price Index figures for food bought by ordinary shoppers showed the average price of a roasting joint of beef had risen by 9.8 per cent to £11.34 over the year to April, while chicken had risen by 10.4 per cent to £3 a kilo.
However, caterers have reported even higher rises between 20% and 30% for most products. Prices can also change by the hour.
The cost of minced beef rose by 11 per cent overnight in recent days, Laca said, while one catering company saw the cost of 10kg of prepared potatoes increase from £10.46 to £15.50.
Elsewhere, Heinz staples such as baked beans, ketchup, salad cream and soup soared in price by up to 55 per cent in June.
Data from retail research experts Assosia shows the price of Heinz beans is up a third in Asda since June 17 – up from 90p to £1.20 per can – while a standard bottle of Heinz squeezy ketchup is up 39 per cent in Morrisons, from £2 to £2.79.
Assosia’s retail research team has provided data that shows the Heinz price spike at the four largest supermarkets in June.
Between January and March, real household disposable income fell by 0.2%. Income growth of 1.5% was outpaced household inflation of 1.7%. This is the longest drop since 1955, when official statistics were first compiled.
HMRC statistics show that nearly 2 million people were dragged to higher rates and added taxes over the last three years.
The price of canned Heinz soups has also increased, including the family favorite Cream of Tomato. The price of a 4x400g pack has increased 40 per cent from £2.50 to £3.50 in Sainsbury’s. In Asda a single can has gone up from 90p to £1.40.
A 4x200g pack of baked beans Snap Pots is up 20 per cent from £2.50 to £2.99 in Morrisons this month. While a small 200g can of Heinz beans with sausages appears to almost doubled from 65p to £1.20 in Asda.
Inflation is at its highest point in the UK’s history, and the conflict with Ukraine has made it worse by reducing supply chains and driving up grain prices.
The fact that Russia and Ukraine, together representing nearly one-third of the global wheat exports combined, has added to this problem.
The Institute of Grocery Distribution stated that products made from grain like bread or meats from animals raised on grains will experience an increase in prices between summer and autumn.
Why is fuel cost so high? As we race towards petrol at £2-a-litre, here’s what’s sparked the record cost of filling up… and why it isn’t falling
Rob Hull of ThisIsMoney.co.uk
The current crisis in the cost of living is largely driven by the high price of fuel at stations all across Britain.
In recent months, the average price of petrol and diesel has smashed all previous record highs and continues to accelerate, so much that filling the tank of a family hatchback now costs well in excess of £100.
This is not the opinion of experts. According to fuel price analysts, the wholesale petrol cost has dropped by around 5p a litre since June. Diesel has fallen slightly over the past fortnight but not as much.
Why has the price of goods remained high? What is the best way to reverse this trend?
Why is fuel price so high? With the cost of filling up the average family car surpassing £100, we take a look at why petrol and diesel is so expensive and if it is likely to come down soon
What is the current price of petrol or diesel?
The average petrol price has risen to an all-time record at the time this article was published. This has been a nearly daily occurrence for the past few weeks.
Diesel’s highest recorded price is still not too far away.
On Sunday 3rd July, petrol in the UK hit a record high of 191.53p/litre. Diesel, however, held steady at record levels of 199.03p/litre. That’s just one-third of the record setting Friday, 1 July when it reached 199.07p.
Mail Online and This is Money have a feature called “Latest Petrol and Diesel Prices” on their Motoring and Cars Homepage.
This site is powered by RAC Fuel Watch, and it updates every day so that you are up-to-date on the UK average price before going to a forecourt.
These prices reflect the UK-wide average. Therefore, it’s possible that local forecourts will charge more than those displayed on this website.
Why is the fuel cost so high?
There are many factors that influence the final price of petrol or diesel. But the most important influence on petrol and diesel prices is the crude oil price.
The price charged by fuel companies for petrol or diesel “wholesale” has been greatly affected.
Demand has a huge impact on fuel prices, which is why petrol fell below £1-a-litre at the start of the Covid-19 pandemic and people were restricted on how far they could drive
Experts at the AA/RAC repeatedly accuse the industry of ‘rocket pricing’. They claim that the industry passes rising wholesale prices on to consumers quickly, but does not cut them as rapidly when they fall.
They will argue, among other things that forecourt prices reflect what the purchaser paid for the product. This is another reason why petrol and diesel costs don’t always correspond with wholesale pricing.
Retailers are not required to bring down pump prices in order to keep costs low.
However, the Consumer and Markets Authority is conducting a Government-initiated investigation into fuel prices in the country.
FairFuelUK and other campaign groups have called for an independent regulator in order to make sure that drivers get fair treatment by large oil companies.
The price of fuel is also affected by the demand, as we have seen over recent years.
Retailers had to store and sell fuel when the Covid-19 pandemic hit in the UK. There was a nationwide lockdown that imposed travel restrictions and made it impossible to transport the fuel. More petrol and diesel were being delivered faster than they could buy.
This decline in demand saw the average UK supermarket price of unleaded fall below £1-a-litre in May 2020 – which seems like a distant memory now with petrol costing almost double that.
Taxation accounts for more than 40% of the price we pay at the pump. Retail profit margins, the cost of biofuel and other factors can have an impact on how much we pay at our forecourts.
The price of fuel is determined by other factors.
When it comes to diesel and petrol prices, there are many other factors.
These include the bio content that’s used in manufacturing both fuel types. This is intended to reduce their environmental impact.
There are also the costs of transportation, profit margins for retailers and taxation.
The UK taxes petrol and diesel twice: First, there is a 52.59p fuel duty on each litre. This is followed by a tax of 20 percent for VAT.
This means that taxation is responsible for 40% of the current price drivers pay at the pump.
Why did fuel prices soar?
Cast your mind back 12 months and the price of petrol and diesel was 130.5p-a-litre and 133p respectively at the start of July 2021. Prices were about to rise.
A combination of panic buying, fuel supply problems and increasing oil caused petrol and diesel prices to surpass previous records that existed in October 2012.
However, it was February’s outbreak of war in Ukraine that caused the price of filling up the tank to soar.
Russia is the largest exporter of oil in the world, however sanctions have been imposed on Russian products due to the consequences of its invasion of Ukraine.
Like EU leaders, the UK has pledged to eliminate all Russian oil by the close of this year. Imports from the USA have been completely banned with immediate effect.
This is why oil demand has increased from other sources to fill the gap, which in turn has caused higher oil prices.
Even though Russia accounts for only 6 percentage of UK crude oil imports, the effect on the global marketplace has driven prices up, particularly with the pound against the US dollar (and the oil price traded in US dollars).
Do fuel prices need to be higher than they already are?
According to the RAC petrol should cost much less than it is now, after five consecutive weeks of wholesale price declines.
Simon Williams, the fuel price expert for motoring organisations, said that large supermarkets have a major role in keeping prices high. They are failing to reduce costs when they can.
Williams explained that delivered unleaded cost an average of 145.7p per gallon last week. This is after adding 7p to the margin of retailers and 20 percent VAT, which results in a price of 183p.
The big four superstores which are the largest in fuel sales have maintained their prices at a record 190.19p for one liter of gasoline.
We would like to hear their rationale for keeping their prices high in this case, but we haven’t seen them speak out publicly.
It’s often the smallest retailers that are the most supportive of the sector, even though they sell more fuel than others.
Luke Bosdet, AA spokesperson, says that it’s’very difficult’ to explain why forecourts don’t bring down prices.
The RAC believes that petrol should have a much lower price than it is now, especially after the five-week decline in wholesale prices.
He said that it could be supermarkets paying higher fuel prices in order to get their Aldi matching offers. Then again, local oil company-branded websites may not feel any pressure to reduce their prices.
“Maybe this is a carbon copy from what occurred in the lead-up to 23 March’s fuel duty cut.” [read about this below]Wholesale prices were falling, but fuel trade continued to rise at the pumps. This was in anticipation that the Government would make the savings through a reduction of duty.
‘Or, perhaps, it’s because fuel customers have stopped buying sweets and coffee when they go to pay for their petrol and diesel … which is why a pump price cut might entice them to resume those habits.
“Our concern, however, is that the gasoline demand has remained at 94%, which means that both supermarkets as well as non-supermarket sites believe that the majority of their customers will be able to absorb the loss.
“That is because they take us for fools.”
Are fuel prices likely to fall soon?
According to reports, experts think that fuel prices should not be higher, but there may be another big spike within the next few weeks.
Experts predict that oil prices worldwide could reach an all-time high of $380/barrel if Vladimir Putin responds against war-related sanctions by limiting Russia’s crude oil production further.
Analysts fear a ‘stratospheric’ rise that would see oil prices almost quadruple – and that would easily push pump prices well over £2 per litre and have a devastating ripple effect for global markets.
JPMorgan stated that a 3 million barrel reduction in daily crude oil supplies could cause London’s crude prices to rise to $190 per barrel. The doomsday scenario of $5 million per day causing prices to soar to $380 per barrel is also possible, according to Bloomsberg.
The analysts stated, “Russia might decide not to join and instead take a retaliatory action by reducing its exports.”
“It is possible for the government to retaliate with a reduction in output as a means of inflicting pain on the West. Russia has the advantage of tightening global oil market.
Was there anything already done to lower fuel costs?
To reduce the record-breaking fuel prices, Rishi Sunak (Chancellor) announced on 23 March a 5p per litre immediate reduction in fuel duty to stem the crisis.
It was reduced to 52.95p for every litre petrol or diesel. This will continue until March 2023.
But, eight weeks after cuts were made, unleaded prices in the UK rose back to records at a record high (above 167.30p), which has continued its climb since.
Is the government going to take additional steps to reduce fuel prices?
The RAC says it has been ‘lobbying the Government for months’ to take further action to ease the financial burden caused by record pump prices.
To ‘help struggling drivers and businesses,’ the motoring group called for another cut in duty or VAT.
The AA stated that any reduction in fuel prices would provide relief to families struggling with the high cost of living. They also said that the fuel trade was denying them that.
As protesters block the M62 exit, they talk with the police using a stinger.
Protesters took to the streets this week to voice dissatisfaction with the fuel price.
Traffic jams have caused traffic congestion on major roads and motorways in different parts of the country as part of the campaign to get the Chancellor to reduce fuel-related taxes.
Howard Cox, FairFuelUK founder, said that protests were aimed mainly at three-lane motorways like the M4, M25 and M54.
He said that his organization isn’t involved, but he stated that he was ‘fully supportive” of demonstrations as long as they’re legal.
Protests were organized via social media, under the banner Fuel Price Stand Against Tax.
Is it possible that this could result in more fuel duty cuts? Downing Street refused to exclude it. No10 stated that it would keep prices and tax payments under review.
Boris Johnson spoke out to say that another reduction in fuel duty may be possible. He cited the March cut of 5p, which he had repeatedly asked retailers to share with consumers.
When pressed on the matter, he said: “Well, like the Chancellor has stated, we clearly keep the support we give to the public under revision. This is evidently still true.
According to the AA, simple green driving techniques can help reduce running expenses by as little as 9p per liter
What can you do to reduce record high fuel prices?
If you are willing to make some changes in your driving and to prepare your vehicle for maximum efficiency, there are many things that you can do.
According to the AA, eco-driving is easy and can save you as much as 9p per liter.
We have compiled the top 10 most efficient driving tips that This Is Money can offer to motorists who want to maximize the fuel efficiency of their cars.