Britons 'cautious' as grocery prices rise

Supermarkets are being hit hard by the government's austerity measures.

New figures from Kantar Worldpanel show a sharp dip in total sales growth from 3.9% last month to 2.6% in March.

However budget retailers Aldi & Lidl are continuing their double digit growth and freezer centres Iceland & Farm Foods are also doing well as customers seek out value for money products.

Edward Garner, Kantar's communications director, told the BBC: "People are taking a look at 2011 and saying they don't like the look of it at the moment, so they are being cautious."

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