UK Grocery inflation hits 17.1%
UK grocery inflation continued to climb during February to reach a new record high of 17.1%, according to industry data.
Kantar Worldpanel reported that the increase over the past 12 months meant that families faced a potential £811 annual rise in the cost of their regular shopping basket.
Market researcher Kantar said prices are rising fastest in markets such as milk, eggs and margarine.
“This February marks a full year since monthly grocery inflation climbed above 4%. This is having a big impact on people’s lives,” Fraser McKevitt, head of retail and consumer insight at Kantar, said.
He said its research found that rising grocery prices are the second most important financial issue for the public behind energy costs. Also a quarter of people say they’re struggling financially, versus one in five this time last year.
After a tough 2022, British consumers are facing a further squeeze on their finances this year as the government cuts back support on household energy bills and mortgage rates rise.
However, Official data published this month did show overall UK consumer price inflation fell to 10.1% in January, the lowest reading since September, while confidence data from market research firm GfK last week showed consumers had turned more upbeat about their personal finances.
Kantar said that sales of own label products were up by 13.2% in February, well ahead of growth in branded products, which are generally more expensive, of 4.6%.
Kantar said UK grocery sales increased 8.1% over the 12 weeks to Feb. 19, masking a drop in volumes when accounting for inflation.
- Aldi was the fastest-growing grocer. Sales surged 27% to £3.16 billion, helping its market share rise to 9.4% from 8.0%.
- Lidl sales were 25% higher at £2.39 billion, with its market share rising to 7.1% from 6.1%.
- Ocado sales surged 11% to £628 million from £564 million. Its market share edged up to 1.9% from 1.8%.
- Tesco sales rose 6.6% to £9.19 billion during the 12 weeks, from £8.62 billion. Its market share decreased to 27.3% from 27.7%.
- J Sainsbury sales rose 6.2% to £5.12 billion from £4.82 billion, Sainsbury’s had a 15.2% share of the UK grocery market during the 12 weeks, down from 15.5%.
- Morrison Supermarkets suffered a market share decline to 9.0% from 9.8%.
- Co-op’s declined to 5.5% from 5.7%
- Waitrose’s fell to 4.7% from 5.0%.
- Iceland’s edged up to 2.4% from 2.3%.
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