Struggling shoppers are cutting back on groceries

Almost half of adults (46 percent) said they had noticed higher prices in their normal shopping in the last two weeks. And statistics suggest they are cutting back on groceries as a result.

The Office for National Statistics (ONS) said retail sales tumbled 1.6 percent across food stores and found that sales in supermarkets dropped 1.5 percent over May.

With consumer confidence last month hitting its lowest level since records began in 1974, there was a 2.2 percent drop in specialist shops such as butchers and bakers.

The biggest decline was in alcohol and tobacco, with sales down four percent.

The ONS said non-food stores sales were unchanged last month, with a 2.2 percent increase in clothing purchases which was offset by a fall in household goods.

The data revealed fuel sales jumped by 1.1 percent in May, driven by an increase of workers returning to offices.

The ONS also revised down sales growth in April, from a 1.4 percent estimation to 0.4 percent.

Heather Bovill, ­deputy director for surveys and economic indicators, said: “Feedback from supermarkets suggested customers were spending less on their food shop.”

“More workers returning to the office may have contributed to increased fuel sales, while shoppers buying outfits for summer holidays helped boost clothing sales.”

“These rises were offset by falls for household goods and department stores, with retailers in these areas reporting consumer reluctance to spend.”

Supermarket giant Asda reported that earlier this week some shoppers were asking cashiers to stop scanning items when the till total hit £30.

And analysts Kantar warned consumers the annual grocery bill will jump by £380 to £4,960 as near-double digit inflation sends prices soaring.

Helen Dickinson, chief executive of the British Retail Consortium, said: “Many customers are buying down, particularly with food, choosing value-range items where they might previously have bought premium.”

And Martin Beck, chief economic adviser to the EY Item Club, said with sales falling in five of the last seven months, the retail sector is “effectively already in recession and the wider consumer sector is likely to experience a marked slowdown this year”.