Grocery price inflation in the UK has fallen for the second month in a row, according to the latest report from Kantar.
In the four weeks to 14 May 2023 grocery prices were up 17.2% compared with the same period last year. That’s a decrease of 0.1 percentage points on last month’s figure but remains very high, representing the third fastest rate of grocery inflation recorded by the research firm since 2008.
If consumers don’t shop in different ways, this increase in prices could add an extra £833 to the average household’s annual grocery bill.
People are making savings where they can by opting for cheaper items. Sales of own-label products grew by 15.2% this month, almost double that of branded products which rose by 8.3%. However, Kantar noted that the gap between own lines and brands is narrowing in most stores, helped in some cases by loyalty discounts. The recently launched Nectar prices scheme boosted sales of brands bought on deal in Sainsbury’s, causing them to jump by more than a quarter this period.
While most prices are continuing to rise, some prices are coming down as the supermarkets compete to offer the best value. For example, the average cost of four pints of milk is now 8 pence lower than last month, at £1.60 — but this is still much higher than 12 months ago, when the average price was £1.30.
With an extra bank holiday this month to mark the King’s coronation, grocery sales climbed by 16% during that week which added up to an extra £218m passing through the tills.
