Grocery inflation in the UK has reached its lowest level since February 2022 as it fell to 4.5% this month, market researcher Kantar has reported.
Despite the fall, nearly a quarter of British households still identify themselves as struggling financially.
Kantar reported that annual grocery price inflation was 4.5% in the four weeks to 17 March, compared to 5.3% in the previous four-week period.
Prices are rising fastest in markets such as sugar confectionery and chocolate confectionery, as well as vitamins and supplements.
Increased prices within the confectionery sector may indicate an effort to increase profit margins as prices of sugar and cocoa continue to rise.
Prices are falling quickest in butter, milk, and toilet tissue according to the data.
‘Still Feeling The Squeeze’
Kantar’s head of retail and consumer insight Fraser McKevitt said, “Grocery inflation has come down significantly since hitting an eye-watering peak of 17% in March 2023.
“However, despite this continued slowdown, many British households are still feeling the squeeze.
McKevitt added, “23% identified themselves as struggling financially in our data – the same proportion as reported in November last year.”
Kantar said that take-home grocery sales rose 4.6% over the four week period year-on-year.
It also noted that an early Easter this year boosted sales of seasonal treats in the first three months of the year by £88 million compared to the same period last year.
Supermarket Sales
Ocado was the fastest growing UK retailer over the 12 weeks to 17 March according to the researcher, with sales up 9.5% year-on-year.
The online grocer’s growth was aided by a sustained voucher campaign that helped attract customers.
Number one and two grocers, Tesco and Sainsbury’s, saw sales increase by 5.8% and 6.7% respectively.
The third largest supermarket Asda saw sales up only 0.2%, lagging behind all competitors.
Number four – Morissons – had a sales increase of 3.6%.
Discount retailers Aldi and Lidl saw growth of 3.1% and 8.8% respectively. However, as Lidl’s market share increased, Aldi’s fell slightly.
Read More: UK Retail Sales Rise After 10 Months Of Falling – CBI
