British shoppers faced increased pressure on their budgets last month as grocery price inflation edged higher, according to industry data released on Tuesday.
Market researcher Kantar reported that annual grocery price inflation was 2.0% in the four weeks leading up to September 29, up from 1.7% in the previous four-week period.
Prices have risen fastest for items such as chilled soft drinks, chocolate confectionery, and skincare products, while household paper products, dog food, and cat food have seen the sharpest price declines.
Official data released last month showed overall UK inflation held steady at 2.2% in August. The inflation figures for September will be released on October 16, ahead of the new Labour government’s budget statement on October 30.
Kantar’s data also revealed that UK grocery sales rose by 2.0% in value terms year-on-year for the four-week period, down from a 3.0% increase reported last month.
Online supermarket Ocado continued its trend as the fastest-growing grocer over the 12 weeks to September 29, with a 10% increase in sales year-on-year, bringing its market share to 1.8%.
Industry leader Tesco saw sales growth of 5.2%, increasing its market share by 60 basis points to reach 28.0%, its highest level since December 2017.
Sales at the second-largest grocer, Sainsbury’s, rose by 5.1%, while the third-largest, Asda, lagged behind, with sales falling by 5.1% and a market share loss of 1.1 percentage points year-on-year.
Discount retailers Aldi and Lidl saw sales growth of 1.8% and 8.8%, respectively, during the period. Photo by Philafrenzy, Wikimedia commons.