Iceland freezes prices on £1 value range to ease cost-of-living crunch

The frozen food specialist’s managing director Richard Walker said the move will “support shoppers who are feeling the pinch” after UK inflation peaked at a near 30-year high of 5.4%. 

Walker said: “We know that our customers will be feeling the pinch as inflation surges and it is our priority to mitigate it as much as we can, continuing to commit to everyday low prices across our ranges.

“We hope this price promise brings some reassurance to those who are concerned about their finances in the year ahead and will help to keep weekly grocery shopping as affordable as possible.” 

Iceland’s price lock will stretch across frozen, ambient and fresh household lines, including fresh and frozen vegetables, pizzas, chips, ready meals and ice creams.

The commitment came after the Bank of England warned consumer price inflation is likely to hit 6% by April, while some city analysts predict inflation could hit 7% later in the year.

Energy costs are set to spiral, National Insurance will increase and rail fares are also going up – increases that will put pressure on consumers’ disposable incomes. 

KPMG head of consumer markets, leisure and retail Linda Ellett said consumers are likely to reduce household spending in 2022, particularly on eating out, clothing, takeaways, and weekly food and drink shopping.

“These businesses will be mindful that consumers are having to take their own cost-cutting decisions and competition for remaining household spend is increasing,” Ellett said.

“Raising prices in this environment may be deemed unavoidable, but it may compound the decision consumers make to cut back spending in these areas.

“Businesses need to ensure productivity options are exhausted first and also assess whether the rollout of new products or offers can give them an edge in this landscape.”

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