Food cost increases ‘may impinge on debt management’

Increasing grocery costs could be impacting upon consumers’ debt management, a new study indicates.

According to a report by the Royal Bank of Scotland, Britons are paying 5.6 per cent more on their food shopping than they were 12 months ago.

Meanwhile, shoppers in Europe were reported to have seen a 1.9 per cent increase, reports the Daily Mail.

Overall, grocery costs were reported to be rising three times faster in Britain than the rest of Europe.

In their study, the report’s authors, economists Ross Walker and Geoffrey Dicks said rising energy prices and the dominance of major supermarket chains had pushed up costs, which could affect Britons’ ability to make personal loan repayments.

Matt Hardman, from the Forum of Private Business, commented: "The supermarkets have been able to convince consumers that shopping with them is cheaper than anywhere else, but in reality if you do your homework you can get a better deal elsewhere."

Earlier this week, Sainsbury’s Bank research indicated that as the cost of living is to rise by 12 per cent over the course of this year, consumers should look to change to competitive personal loans and other financial products.

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