Grocery price inflation falls to lowest level in over a year

Grocery price inflation has fallen to its lowest level in over a year to 11%, marking the seventh consecutive month of decline in a row.

According to the latest data from Kantar, take-home grocery sales for the four weeks to 1 October 2023 rose by 9.1%, compared with last year.

The drop in inflation is the lowest since July 2022, with the price of butter down 16 pence compared with this time last year.

Additionally, the retail analysts found that the jump in the amount of money spent on offers is also helping to offset the impact of inflation, as the proportion of groceries bought on deal increased to 26.5% in the latest 12 week period, the highest level since June 2022.

Volume sales of ice cream, burgers and dips also increased in September, due to the sunny weather.

In comparison, grocery price inflation stood at 12.2% last month.

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Strategic insight director at Kantar Tom Steel comments: “Grocery price inflation is still very high, but shoppers will be relieved to see the rate continuing to fall.

“For the first time since last year, the prices of some staple foods are now dropping and that’s helping to bring down the wider inflation rate.

“Dairy was one of the categories where costs really shot up last autumn but the average price paid for a 250g pack of butter is now 16 pence less than 12 months ago.”

He expands: “Supermarkets are looking at all the different ways they can deliver value at the tills and while the emphasis for some time has been on everyday low prices, the retailers are starting to get the deal stickers out again.

“Spending on promotions made up over a quarter of all sales in the latest 12 week period at 26.5%, the highest level since June 2022.”

As for general inflation, the UK saw a surprise fall in August to 6.7%, largely driven by slowing food prices, as the cost of living plunged to its lowest level in a year and a half.



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