UK grocery spending grew by 6.3% to reach £11.7bn in November, and is forecast to hit £13bn for the first time ever in December.
Prices for food and drink are continuing to rise, albeit at a slower pace than in previous months, according to industry analyst Kantar. Its latest monthly report shows that grocery inflation dropped again in November to 9.1% — the lowest level since June 2022.
And in a sign of the strong competition among supermarkets, the cost of a Christmas dinner for four — including turkey, vegetables, Christmas pudding and sparkling wine — has risen well below the overall inflation rate this year at 1.3%, as some items have actually fallen in price.
The UK’s Consumer Prices Index (CPI) measure of inflation currently stands at 4.6%.
“The festive period is always a bumper one for the grocers with consumers buying on average 10% more items than in a typical month,” said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.
Friday 22 December is predicted to be the single busiest day in the supermarkets as people rush to make sure they have what they need ahead of the big day.
Many households held back on Christmas spending in November, according to separate figures from the British Retail Consortium (BRC) and KPMG.
“With the clock ticking down to Christmas, sales growth in November remained weak at 2.7%, despite a big push from retailers around Black Friday deals,” said Paul Martin, UK head of retail at KPMG.
“Food and drink, health, personal care and beauty categories continued to drive growth whilst jewellery and watches saw the biggest decline in sales on the high street, suggesting consumers are abandoning expensive presents in favour of more budget friendly gifting.”
