Shoppers unpleasantly surprised by higher prices for staple foods such as bread, fruit and milk this summer might have even more cause for concern than they realise: these high prices may be here to stay. Analysts believe that the latest round of price rises could signal the end of a period of aggressive competition among supermarkets as retailers act to restore profit margins and respond to rising costs.

“Price competition in the UK supermarket industry has not been as fierce in the last three months as it has been historically,” said Jonathan Pritchard, analyst at Oriel Securities, adding that sustained increases in food prices could create “perfect” conditions for supermarket profit growth.