Heinz and Tesco pricing row heightens food inflation fears as 76% of UK consumers are concerned about impact of inflation on household budgets, says GlobalData

Following the news that Kraft Heinz has stopped supplying products to Tesco in the UK; Nidhi Chauhan, senior consumer analyst at GlobalData, a leading data and analytics company, offers her view: “Kraft Heinz has stopped supplying products to Tesco in a disagreement over pricing, as a rise in energy and commodity prices combined with supply chain challenges are forcing some manufacturers to raise prices.

“However, with *three out of four UK consumers (76%) concerned about the impact of inflation on their household budget, according to a recent GlobalData survey, retailers are resisting passing on any increase to consumers as they strive to keep prices low and maintain their price proposition in an increasingly price sensitive and competitive market.

“Further price increases might lead cash-strapped consumers to look elsewhere to find grocers offering better deals and better value for money.

“Rising inflation and a gloomy economic outlook suggests this might just be the beginning of supplier lead price increases as other manufacturers face similar challenges.”