© Reuters. FILE PHOTO: Folks store at a grocery market, in London, Britain Could 6, 2023. REUTERS/Emilie Madi
By James Davey
LONDON (Reuters) – British grocery inflation eased barely for the second month in a row in Could however remained near file highs, business knowledge confirmed on Tuesday, offering little consolation for shoppers grappling with a cost-of-living disaster.
Market researcher Kantar mentioned annual grocery inflation was 17.2% within the 4 weeks to Could 14, and whereas that was down from 17.3% in its April knowledge set, it was the third quickest fee it has recorded since 2008.
It mentioned UK households now face an extra 833 kilos ($1,051) on their annual buying payments if they don’t change their behaviour to chop prices.
It mentioned costs are rising quickest in merchandise resembling eggs and ambient cooking sauces.
The Kantar knowledge for Could gives the freshest snapshot of UK grocery inflation.
Official UK knowledge printed final month confirmed general shopper value inflation fell to 10.1% in March. Nevertheless, costs of meals and non-alcoholic drinks had been 19.1% increased in March than a yr earlier, the largest such rise since August 1977. Official knowledge for April will probably be printed on Wednesday.
The Financial institution of England mentioned earlier this month it anticipated general inflation to fall extra slowly than it had hoped, principally attributable to unexpectedly massive and protracted rises in meals costs.
Meals retailers have mentioned they count on costs to rise in 2023 general however with the speed of inflation declining via the yr.
Costs for some merchandise that had seen the sharpest rises, resembling milk, butter, bread, pasta, vegetable and sunflower oil, have began to fall.
Kantar mentioned the typical value of 4 pints of milk has come down by 8 pence since final month, however famous costs are nonetheless 30 pence increased than this time final yr.
It once more highlighted that customers are skirting increased costs by selecting extra own-label items, gross sales of which grew by 15.2% over the month, nearly double that of branded merchandise which rose by 8.3%.
Kantar mentioned general grocery gross sales rose 10.8% over the 4 weeks year-on-year, with gross sales up 16% throughout the week of King Charles’ coronation, with an additional 218 million kilos spent.
German owned discounters Aldi and Lidl had been once more the quickest rising grocers, with gross sales development of 24.0% and 23.2% respectively.
UK grocers’ market share and gross sales development (%)
Market share Market share % change in
12 wks to 12 wks to gross sales
Could 14 2023 Could 15 2022 (yr-on-yr)
Tesco (OTC:) 27.1 27.4 8.9
Sainsbury’s 14.8 14.8 10.5
Asda 13.9 13.8 10.6
Aldi 10.1 9.0 24.0
Morrisons 8.7 9.5 0.6
Lidl 7.7 6.9 23.2
Co-operative 5.7 6.1 2.9
Waitrose 4.6 4.9 4.8
Iceland 2.3 2.3 9.1
Ocado (LON:) 1.7 1.7 5.6
($1 = 0.7923 kilos)