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UK grocery inflation has hit a milestone. Dropping to 9.7% in the four weeks leading to October, according to Kantar’s latest data. This marks the first time in 2023 that British grocery inflation has fallen below 10%. Thus, offering a glimmer of hope for consumers as they approach the crucial Christmas shopping season.
UK Grocery Inflation at 9.7% in October
While this decline is certainly a positive development, Fraser McKevitt, Head of Retail and Consumer Insight at Kantar, emphasizes that consumers are still feeling the economic pressure. Notably, price reductions are observed in only a handful of major categories, including butter, dried pasta, and milk. On the flip side, prices are surging in specific markets, such as eggs, sugar confectionery, and frozen potato products.
Limited Price Falls in Key Categories
The trajectory of food inflation is of paramount importance to various stakeholders. The Bank of England is closely monitoring it in consideration of interest rates. And lawmakers are taking note as Prime Minister Rishi Sunak aims to halve overall inflation ahead of a potential national election in 2024.
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Kantar’s data also reveals that grocery sales for the four weeks ending October 29 have increased by a substantial 7.4%. Own label products have seen a growth rate of 8.0%, with branded products not far behind at 6.7%.
Grocery Sales Increase by 7.4%
Sales promotions have seen a remarkable surge, with 27.2% of total grocery sales attributed to promotions, the highest level since last Christmas. These findings coincide with a separate survey by Barclays, which reports a slowdown in consumer spending due to concerns about the cost of living during the holiday season.
In addition to these insights, it’s worth noting the market share and sales growth of UK supermarkets, with Tesco, Sainsbury’s, and Aldi leading the pack.
As consumers prepare for the holiday season, these developments in grocery inflation and consumer spending are critical factors to watch in the coming months.
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