Grocery sales increase as food price inflation hits 12.4%, adding almost £600 to average basket

FMCGSupermarkets

Grocery sales have continued to increase as price inflation hit a new record of 12.4% in August, adding £571 to the average annual grocery bill, according to the latest data from Kantar.

Take-home grocery sales increased by 3.8% in the 12 weeks to 4 September 2022, with sales of the very cheapest value own-label products up by a third compared to a year ago.

The figures mark the third month in a row that the sector’s sales have grown after spending more than a year in decline, following on from tough comparisons against inflated grocery sales during the pandemic.

The rise also comes as grocery price inflation hit 12.4% during the past month, a new record based on Kantar’s data.

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Fraser McKevitt, head of retail and consumer insight at Kantar, comments: “It seems there’s no end in sight to grocery inflation as the rate at which food and drink prices are increasing continues to accelerate.

“Now standing at 12.4% for August, the latest figure means that the average annual grocery bill will go from £4,610 to £5,181 if consumers don’t make changes to what they buy and how they shop to cut costs. That’s an extra £571 a year.”

Kantar’s data revealed that core grocery categories such as milk, butter and dog food are jumping up especially quickly, with rises of 31%, 25% and 29%, respectively.

“In what is a fiercely competitive sector, supermarkets are reacting to make sure they’re seen to acknowledge the challenges consumers are facing and offer best value, in particular by expanding their own-label ranges,” McKevitt said.

“Their efforts seem to be well-received by consumers with sales of the very cheapest value own-label products up by 33% this period versus a year ago and nearly one in four baskets containing one of these lines.

“Overall spending on all retailer own-label lines was £393 million higher during the latest four weeks, pushing own-label’s share of the market to 51.1%.”

Supermarket sales also benefitted from families preparing for the end of the summer holidays and the back -to-school period, with sales of packed lunch staples such as sliced bread, cheese snacks and yoghurts up by 12%, 18% and 57% respectively.

FMCGSupermarkets

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1 Comment. Leave new

  • Andy Grey Rider
    September 14, 2022 9:30 am

    Take it to 80% and it wouldn’t make an impact because much more is wasted on a peripheral living the media doesn’t report on!

    Reply

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