Grocery price inflation has fallen for the third consecutive month to the lowest level since 2022, according to new data from Kantar.
It now sits at 16.5% for the four weeks to 11 June, down from 17.2% in May.
British take-home grocery sales also rose by 10.8% over the month, in comparison to the same period last year.
While Kantar head of retail and consumer insight, Fraser McKevitt, has said the fall in inflation “will be a relief to shoppers and retailers” it is the sixth highest monthly figure in the past 15 years.
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This comes as the retail analysts found that consumers are more concerned about rising grocery prices now than they were at the beginning of 2023, with nearly 70% of households ‘extremely’ or ‘very worried’ about food or drink inflation.
“Consumers are doing what they can to offset the impact of inflation. Savvy shoppers have been continuing to swerve the full force of price increases,” McKevitt said, adding that total spend on value ranges has risen by 41% compared to last year.
As a result, the value tier has become the fastest growing part of the market every month since June 2022.
Kantar also found that the cost-of-living crisis is changing the way that retailers are pricing products.
While the most populer price for a grocery item is typically £1, this has almost halved in a year from 9% to 5%.
McKevitt explained: “Traditionally, ‘round-pound’ prices have been attractive to shoppers, who find them easier to relate to and practical as well with no leftover change. But, with retailers eager to offer value and cash buying less popular, £1.25 has emerged as an increasingly important price point.”
