Research has found that a seemingly innocent £2 habit is actually costing Brits hundreds of pounds per year. That is according to finance experts, who have warned Brits of the “treat creep” that is seriously affecting wallets. Office for National Statistics data shows food and non-alcoholic drink prices rose 4.5% year-on-year, say the experts at Unbiased, a financial advisor service. A surprising McDonald’s treat, which seems like an innocent purchase that wouldn’t do much harm, has sparked concern.
The personal finance experts point out that the McDonald’s hash brown, which is famously a grab-and-go snack that Brits enjoy for cheap, is now £1.99. Small increases like this, as Brits continue to treat themselves with small purchases every day, add up throughout the year and put a strain on households. The experts pointed out several classic cheap treats that have gone up in price, and also predict even more price increases as British households find ways to cope in the current cost-of-living environment.
The six popular items that have increased in price over the last year are:
- McDonald’s hash brown: £1.50 to £1.99 = 33% increase
- Greggs’ sausage roll: £1.30 to £1.35 = 4% increase
- Iced latte from a high street café: £3.90 to £4.20 (average) = 7% increase
- Tesco meal deal: £4 to £4.25 (without a clubcard) = 6.
25% increase - Pret butter croissant: £2.70 to £3.10 = 14.8% increase
- Freddo: £0.30 to £0.35 = 16.7% increase
Meanwhile, they predict the following price increases over the next year, although none of these have been reported:
- Fast-food sides like McDonald’s small fries or chicken nuggets: £2.00 to £2.20-£2.40
- Cadbury’s Dairy Milk (95g): £1.59 to £1.85
- Morrisons’ Minced beef and onion pie: £1.25 to £1.50
- Cinema tickets: £8vi to £9-£9.50 before snacks and drinks
- 500ml Bottle of Diet Coke: £1.95 to £2.10
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“These are everyday purchases, not luxuries,” said Karen Barrett, Founder and CEO of Unbiased. “It’s a few pence here and there, but it adds up fast. These small jumps can quietly
She urges Brits to check their micro-spending habits regularly, while also factoring in rising prices into their budgets so they’re not caught off guard.
Additionally, she says British spenders should protect long-term money first, keeping pensions, ISAs and repayments consistent. Meanwhile, it’s also a good idea to rebalance every few months to keep up with fast-changing treat prices, and keep a buffer in your disposable income for these unpredictable jumps.
“The real danger isn’t one £2 hash brown,” she added. “It’s the lack of a financial plan, which is when treat creep quietly snowballs into a much bigger hit on your budget.”