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As we launch a campaign to track the real rise in price of everyday items, Rebecca Smithers recalls her surprise at a 13% increase in the cost of a pot of porridge
It is a healthy and nutritious breakfast regardless of the weather, and one that has always been relatively cheap whether we make it ourselves or buy a pot to takeaway.
So porridge afficionados like myself must be shocked to learn that sandwich chain Pret a Manger has increased the price of a pot of the stuff from £1.99 (just below the £2.00 threshold where things start to look quite expensive) to an eye-watering £2.25. That's a 13% increase overnight. As I wept into my oats on a rainy, windswept London morning, I wondered how this bold above-inflation price rise could be justified.
Back at the office I called Pret. Its managing director, Clive Schlee, told me: "We have had to put the porridge price up by more than we would like. The problem was that the cost of milk has gone up by over 30% during the past 18 months and the cost of oats has also moved significantly.
"In addition, VAT on hot food moved up at the start of the year. The combined impact meant we had to do something. I think customers understand the background to these things."
Alan Meikle, managing director of Grampian Oat Products, which supplies major supermarkets including Sainsbury's and Tesco, did not entirely agree, however, on the soaring cost of oats. "It is true to say that the price of cereals has risen over the last couple of years, but it is too early in the harvesting season to talk about a big rise in the price of oats."
Whatever the truth, a lot of people will be hit by this particular price rise. Back in March, Pret boasted it was selling 50,000 pots of porridge a week, with the increased demand for the humble breakfast cereal helping to lift profits by 37%. So what will all these people do? Take the hit and cut costs somewhere else? Take their own porridge in to work? Or head to the nearest branch of the golden arches where McDonald's Oatso Simple is a relative snip at 99p?
It may seem a small thing, but it is just another example of how prices are rising in almost all areas – and faster than the headline inflation figure of 5% would seem to suggest. We want to hear from you when you spot a price rise – tell us below or on Twitter (use the hashtag #inflationwatch). And tell us how you are responding to it – are you switching brands, shopping around for a better price, or foregoing the item? Where possible we will ask the stores or brand involved why the price has risen so sharply and hopefully we can share tips on finding the things you want to buy at the best price.
Rebecca Smithers
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