GROCERY inflation in the UK has fallen to single digits for the first time in 16 months, according to figures released today. Analysts Kantar revealed that prices were 9.7 per cent higher than a year ago over the four weeks to October 29, down from the previous month's 11 per cent. This marks the eighth consecutive decline since the peak of 17.5 per cent in March and the first time that grocery inflation has fallen below ten per cent since July last year.
Positive signs for consumers
Whilst the overall picture is positive, Kantar notes that consumers are only seeing year-on-year price falls in a limited number of categories, including butter, dried pasta, and milk. However, there is good news for shoppers looking to save money as spending on promotions has hit 27.2 per cent of total grocery sales – the highest level since last Christmas. Shoppers are also turning to own-label lines, which have seen a sales boost of eight per cent over the past four weeks.
Retailers respond to consumer demands
Fraser McKevitt, head of retail and consumer insight at Kantar, commented on the findings, saying, "Retailers continue to look at ways of softening the blow for shoppers and slowing the rate of price rises." This suggests that retailers are actively responding to consumer demands and taking steps to alleviate the impact of rising prices on household budgets.
Lidl leads the way
In addition to the positive news for consumers, Lidl has once again emerged as the fastest-growing retailer in October. This demonstrates the growing popularity of discount supermarkets, as shoppers seek out more affordable options in the face of rising grocery prices.
