UK grocery inflation steady as shoppers rely on discounts

British grocery inflation remained unchanged at 3.3 per cent in the four weeks to February 23, according to Reuters, citing Kantar, as supermarket promotions helped offset rising costs. Sales increased 3.6 per cent year-on-year, with discounted products accounting for 27.6 per cent of purchases.

Supermarkets warned that tax increases in Labour’s October budget and a higher minimum wage could drive inflation further. The Bank of England expects overall inflation to reach 3.7 per cent this year, while industry analysts predict food inflation nearing 5 per cent.

Among retailers, Tesco’s sales rose 5.8 per cent in the 12 weeks to February 23, while Sainsbury’s gained 4.8 per cent. Discounters Aldi and Lidl saw increases of 4.9 per cent and 8.1 per cent respectively, while Ocado led online sales growth with a 9.6 per cent rise.

Attribution: Reuters

Subediting: M. S. Salama