Recent industry data, as reported by Reuters, reveals that UK grocery price inflation has dipped to its lowest point since February 2022, even as approximately 25 percent of British households continue to grapple with financial challenges.
According to market research firm Kantar, there was a 4.5 percent annual increase in grocery prices during the four weeks leading up to March 17, a decrease from the 5.3 percent recorded in the preceding period.
The data highlights that prices are experiencing the most rapid escalation in segments like sugar and chocolate confectionery, as well as vitamins and supplements, while registering the sharpest declines in commodities such as butter, milk, and toilet tissues.
Despite the deceleration in grocery inflation, which reached a peak of 17 percent in March 2023, a significant portion of British households are still feeling the strain financially.
During the specified four-week period, take-home grocery sales saw a year-on-year uptick of 4.6 percent. The early arrival of Easter drove a surge in sales of seasonal delights by £88 million ($111 million) in the first quarter of 2024 compared to the corresponding period last year.
Online supermarket Ocado emerged as the fastest-growing UK grocer over the 12 weeks leading up to March 17, boasting a 9.5 percent year-on-year sales increase, aided by a sustained voucher campaign.
Major industry players Tesco and Sainsbury’s witnessed sales growth of 5.8 percent and 6.7 percent, respectively, bolstering their market share. However, Asda recorded a mere 0.2 percent increase in sales, while Morrisons experienced a more moderate rise of 3.6 percent.
German-owned discounters Aldi and Lidl saw their sales climb by 3.1 percent and 8.8 percent, respectively. Although Lidl’s market share expanded, Aldi’s experienced a slight dip.
