UK grocery inflation in single digits for first time this 12 months -Kantar

LONDON, Nov 7 (Reuters) – British grocery inflation has fallen under 10% for the primary time since July 2022, trade information confirmed on Tuesday, offering some aid for shoppers as they enter the important thing Christmas buying interval.

Market researcher Kantar mentioned annual grocery inflation was 9.7% within the 4 weeks to Oct. 29, down from 11% in final month’s report.

“Whereas the drop … is constructive information and one thing of a watershed, shoppers will nonetheless be feeling the pinch,” Fraser McKevitt, head of retail and shopper perception at Kantar, mentioned.

“We’re solely seeing 12 months on 12 months value falls in a restricted variety of main classes together with butter, dried pasta and milk.”

Costs are rising quickest in markets equivalent to eggs, sugar confectionery and frozen potato merchandise.

The Kantar information gives probably the most up-to-date snapshot of UK grocery inflation.

The newest official information confirmed annual meals inflation was 12.1% in September, although costs did fall on the month for the primary time in two years.

All the nation’s main grocery store teams have lower the costs of some important merchandise in current months.

Final week, Sainsbury’s (SBRY.L) mentioned it had spent 118 million kilos ($146 million) since March in protecting costs down.

Meals inflation’s current downward trajectory is being intently watched by shoppers, the Financial institution of England because it considers rates of interest, and lawmakers, provided that Prime Minister Rishi Sunak has promised to halve general inflation this 12 months forward of a possible nationwide election in 2024.

Kantar mentioned grocery gross sales within the 4 weeks to Oct. 29 rose by 7.4% in contrast with final 12 months.

It mentioned personal label strains grew by 8.0% over the interval, although the hole is narrowing with branded merchandise, which grew at 6.7%.

The researcher additionally famous that the proportion of gross sales via promotions was up throughout each grocer versus final 12 months – one thing that has solely occurred on one different event in almost ten years.

Spending on promotions hit 27.2% of complete grocery gross sales – the best stage since Christmas final 12 months.

A separate survey printed on Tuesday by Barclays confirmed British shopper spending grew on the slowest tempo in additional than a 12 months final month, reflecting considerations about the price of residing within the run-up to Christmas.

UK supermarkets’ market share and gross sales progress (%)

Supply: Kantar

($1 = 0.8061 kilos)

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