Supermarket shoppers are buying more frozen food instead of chilled fresh goods and are eating out less as they try to cut their food bills during the economic downturn, according to ready meals maker Northern Foods.

The Yorkshire-based company has witnessed a rapid change in spending patterns as family budgets are stretched by rising inflation, according to chief executive Stefan Barden.

"We have seen people beginning to change their shopping habits and we expect that to continue during the summer," said Mr Barden. "We are seeing people trade down from chilled to frozen pizza and people who aren't going to pizza restaurants so much are turning to ready meals."
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