UK food price inflation eased for a third straight month in June, with new data suggesting it may have peaked, according to research firm Kantar.
The pace of annual supermarket sales slowed to 16.5% in the four weeks to June 11 from 17.2% in the previous month. The figure was below the recent high of 17.5% set in March and the lowest this year, according to new sector data.
Fraser McKevitt, Head of Retail and Consumer Insights at Kantar, said:price increase Now compared to the rise in food inflation seen last summer, this means inflation will continue to fall over the next few months, a welcome result for all. “
Wholesale energy and food prices soared last summer following Russia’s invasion of Ukraine.
Susannah Streeter, head of finance and markets at Hargreaves Lansdowne, said the data are “new signs” that inflation is set to recede further at a time when “growth in wholesale commodity prices paid by businesses has slowed sharply.” said to show But food costs will remain “stubbornly high,” she added.
The National Bureau of Statistics reported last month that food and non-alcoholic beverage inflation eased slightly to 19.1% in April from a 45-year high of 19.2% recorded the previous month.
Economists forecast by Reuters poll inflation It is expected to drop to 8.4% in May from 8.7% in April when the data is released on Wednesday.
However, grocery inflation is causing shoppers to turn to cheaper supermarkets and private brands. Kantar reported that prices for foods such as eggs, ambient cooking sauces and frozen potato products are rising the fastest.
“Savvy shoppers continue to shy away from all-out price increases, with many switching to the cheapest private-label products,” McKevitt said. His spending on these product lines jumped 41%.
Discount supermarkets such as Aldi and Lidl reported annual spending growth of more than 20 percent, more than double the grocery sector, pushing Aldi’s market share to a record 10.2 percent. Sales at more expensive Morrisons, Waitrose and Ocado nearly stagnated.
Streeter said he expected big price cuts across the aisles to be “a long way off.” “Shopping safaris, where customers select the best prices from multiple stores, will continue to be a trend in the grocery market,” she added.
https://www.ft.com/content/ff8e9ee1-1f4a-4c3f-9ff4-ee9fcf5bdbd4 UK grocery inflation eases for third straight month, Kantar data shows