Promotions fail to cut cost of food

THE weekly supermarket shop is costing consumers an average of 3 per cent more than at this time last year, despite a high level of promotions, according to a survey by The Grocer magazine.

The publication's Grocer Price Index (GPI), due to be published in the latest edition of the magazine today, revealed that Asda was the only retailer which had kept its prices steady - with Sainsbury's hiking its prices most, by 5 per cent.

Even Morrison's, which ran its "Biggest Ever Price Crunch" advertising campaign, was 4 per cent higher.

Tesco, however, had dropped 2.8 per cent, month on month, due to its price war with Asda. Britain's biggest supermarket had launched a "price check" promise, which saw it offer to refund double the difference on products that could be bought for less at Asda.

But the chain was last week forced to introduce a 20 maximum refund after it found customers were using the scheme to win money on products which Asda had on promotion.

Waitrose, which was not included in the GPI index, rose by 3 per cent, year on year.

Bakery goods were the biggest fallers in price over the past year, dropping by 3 per cent, The Grocer report showed.