British grocery price inflation slows to 5.3%, Kantar says By Reuters

© Reuters. FILE PHOTO: A consumer seems to be at fruit and greens inside an ALDI grocery store close to Altrincham, Britain, February 20, 2023. REUTERS/Phil Noble/File Picture

By James Davey

LONDON (Reuters) – British grocery costs rose this month at their lowest fee since March 2022, as grocery store promotions picked up after a post-Christmas slowdown, trade knowledge confirmed on Tuesday.

Market researcher Kantar stated annual grocery value inflation was 5.3% within the 4 weeks to Feb. 18, down 1.5 share factors from the earlier four-week interval.

“Customers have been navigating a grocery inflation fee of greater than 4% for 2 years now, so this newest easing of value rises is particularly welcome,” Tom Metal, strategic perception director at Kantar, stated.

It is going to even be welcomed by the Financial institution of England, which is monitoring meals costs carefully.

Metal stated UK customers’ spending on provides elevated by 4% in February, value 586 million kilos ($743 million) greater than the identical month in 2023.

He additionally famous that this month, Morrisons grew to become the most recent grocer to launch a value match scheme with discounters Aldi and Lidl, after Asda made the transfer in January.

Kantar stated costs are rising quickest in markets akin to sugar confectionery, chocolate confectionery and frozen potato merchandise, and are falling quickest in butter, milk and bathroom tissues.

Separate knowledge from the British Retail Consortium on Tuesday confirmed general costs in UK retailers additionally rose on the slowest tempo in practically two years this month, including to indicators of easing inflationary pressures.

Kantar stated take-home grocery gross sales rose in worth by 5.1% year-on-year over the 4 week interval.

It stated Lidl was the quickest rising grocer in Britain for the sixth month in row, with gross sales up 10.9% over the 12 weeks to Feb. 18.

No. 2 participant Sainsbury’s was the second quickest rising, with gross sales rising 7.6%, whereas gross sales at market chief Tesco (OTC:) rose 6.2%.

Asda and Morrisons had been once more the laggards, with progress of 1.9% and three.1% respectively.

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

Market share Market share % change in

12 wks to 12 wks to gross sales

Feb. 18 2024 Feb. 19 2023 (yr-on-yr)

Tesco 27.6 27.3 6.2

Sainsbury’s 15.6 15.2 7.6

Asda 13.8 14.3 1.9

Aldi 9.4 9.4 5.7

Morrisons 8.8 9.0 3.1

Lidl 7.5 7.1 10.9

Co-operative 5.3 5.5 1.4

Waitrose 4.6 4.7 3.8

Iceland 2.3 2.4 2.1

Ocado (LON:) 1.9 1.9 4.9

Supply: Kantar

($1 = 0.7888 kilos)