UK grocery inflation has fallen this month to its lowest level since September 2021, data from market researcher Kantar showed on Tuesday.
The drop coincided with the fastest rise in monthly supermarket shopper numbers so far this year.
Kantar said annual grocery price inflation was 1.6% in the four weeks to 7 July, versus 2.1% in the previous four-week period.
It said prices were falling fastest for products such as toilet tissue, butter and dog food.
However, it continued rising for items such as vitamins, minerals and supplements, chilled fruit juices and drinks and deodorants.
Election And Euros
Kantar’s data offers the most up-to-date snapshot of UK consumer behaviour since the 4 July general election which saw the Labour Party win.
The data showed take-home grocery sales increased 2.2% in value terms over the four-week period year-on-year.
Official data from the UK published last month showed overall British inflation returned to its 2% target for the first time in nearly three years in May.
Data from June is due to be published on Wednesday, and it is likely to be a key factor in the Bank of England’s deliberations ahead of its 1 August interest rate meeting.
Kantar highlighted a boost to sales of beer, crisps and snacks from the Euro 2024 football championship.
It said Britons made 2% more trips to the supermarket this period than they did one year ago.
This, along with pressure on pockets easing, caused sales of branded products to increase by 3.6%, outpacing own-label items at 2.7%.
Market Share
Over the 12 weeks to 7 July, online supermarket Ocado was once again the fastest-growing grocer, with sales up 10.7% year-on-year.
Market leader Tesco saw growth of 4.6% and hit a market share of 27.7%, its biggest share gain since November 2021.
The number-two supermarket group, Sainsburys, saw growth of 4.7% and holds 15.3% of market share.
Asda was the laggard with sales down 5.3% and a loss of 90 basis points of market share year-on-year, holding 12.7% of the share.
Aldi holds 10.0% of market share, followed by Morrisons (8.7%), Lidl (8.1%), the Co-operative (5.7%), Waitrose (4.5%), Iceland (2.3%) and Ocado (1.8%).
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