UK grocery inflation slows to ’21 levels

UK grocery inflation has slowed to its lowest level since September 2021, coinciding with the fastest rise in monthly supermarket shopper numbers this year, according to industry data released on Tuesday.

Market researcher Kantar reported that annual grocery price inflation was 1.6 per cent in the four weeks to July 7, down from 2.1 per cent in the previous period. Prices fell fastest for items like toilet tissues, butter, and dog food, while still rising for vitamins, minerals, supplements, chilled fruit juices, drinks, and deodorants.

Kantar’s data, providing the most current snapshot of UK consumer behaviour since the July 4 election, showed a 2.2 per cent year-on-year increase in take-home grocery sales over the four-week period.

Last month, official UK data revealed that overall British inflation returned to its 2 per cent target in May for the first time in nearly three years. June’s official data, set to be published on Wednesday, will influence the Bank of England’s interest rate decision on Aug. 1.

Kantar noted a boost in sales of beer, crisps, and snacks due to the Euro 2024 soccer championship. The data also indicated that Britons made 2 per cent more supermarket trips compared to a year ago, with branded product sales increasing by 3.6 per cent, outpacing own-label items at 2.7 per cent.