More food prices to rise thanks to weakening pound

Premier Foods is the latest company to announce price rises to supermarket staples like Mr Kipling cakes, Bisto gravy and Hovis bread.

More supermarket favourites are going up in price thanks to a weakening pound.

Premier Foods, the supplier of well-known brands such as Mr Kipling, Hovis and Bisto gravy is in talks with retails over increasing its prices by as much as 5%.

The company is blaming the pound's falling value for the move which could see prices of “around the mid-single digit mark”.

The revelation comes on the same day that an eagle-eyed shopper at a Tesco in Essex noticed the number of cakes in Mr Kipling chocolate slice boxes have fallen from nine to eight, but the price had remained the same.

Soon you may well be paying more for eight cakes, than you did for nine.

It's not just cakes

Premier Foods is not the first food manufacturer to attempt a price rise recently as a result of the plunging value of the pound.

Back in October Unilever caused controversy when it tried to raise prices on Marmite and PG Tips by around 10% but Tesco refused to accept the change.

The following month Toblerone manufacturer Mondelēz International drew criticism and social media fury for changing the number of peaks on its iconic chocolate bar.

Also in November Walkers increased its crisps prices by 10% and Birds Eye upped prices by 12% with both blaming the exchange rate.

“Since the referendum, the value of the pound has fallen, meaning our costs in sterling have risen,” a Birds Eye spokesperson said. “We are absorbing a significant proportion of raw material inflation. We work to minimise impacts on customers.”

To top it all of, Joe and Seph's popcorn, Typhoo and Naked Wines announced price rises towards the end of 2016. 

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What can you do to keep your supermarket costs down?

Try these handy tips when you do your next shop:

Keep an eye out for reduced items

Supermarkets tend to discount items later in the day in order to get rid before they hit their sell by dates. Shop after 8pm and you should be able to pick up a few bargains.

Use a supermarket comparison website

Tap your shopping list into this and it will tell you what your shopping will cost in all the big supermarkets. It will also tell you if you are missing out on offers that could cut your bill too.

Then simply choose where you want to shop and it will transfer your basket over to that supermarket’s website, or you can print out your list.

Don’t be conned by phoney discounts

Not all supermarket deals are good deals. The big stores are known for offers that upon closer inspection don’t save you money at all. For example, bulk buys that are more expensive than buying the items individually.

On the price label it should tell you what it works out at in pence per gram, or similar, check that to make sure you are buying the cheapest option.

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