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Like-for-like grocery price inflation has dropped to its lowest level since 2022 and now sits at 16.5%, according to the latest market share data from Kantar.
Price inflation should continue to ease in the coming months as price rises are now being compared to the increasing rate of grocery inflation seen last summer.
However, the figure for the four weeks to 11 June remains the sixth-highest monthly figure in the past 15 years.
British take-home grocery sales rose by 10.8% over the month in comparison with the same period last year, implying a sales volume fall of 5.7%.
Fraser McKevitt, head of retail and consumer insight at Kantar, commented: “Savvy shoppers have been continuing to swerve the full force of price increases, with many switching to the cheapest own-label lines.
“Total spending on these value ranges has rocketed by 41% compared to last year and retailers have been quick to respond, expanding their offerings to meet demand. This has helped the value tier become the fastest growing part of the market every month since June 2022.”
On an individual retailer basis over the 12-week period, Asda and Sainsbury’s were the fastest growing of the mults, up 10% year on year, with Tesco up 8.9%.
Morrisons remained in marginally positive territory, up 0.8% for the month.
Discounters Aldi and Lidl were up 24.6% and 23.2% respectively.
Co-op’s sales rose by 3.8%, giving it a 5.8% market share. Following a 3.3% rise in sales, Waitrose now holds 4.5% of the market, leading Iceland and Ocado on 2.3% and 1.7% respectively.
Kantar notes that traditionally retailers have priced products at ‘round-pound’ points, but there is evidence the cost of living crisis is changing that.
McKevitt explained: “The proportion of products sold for £1, the single most popular price for a grocery item, has almost halved in a year from 9% to 5%. That’s a big shift. 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. It now vies with £2 as the second most popular price for a grocery item.”
Over the longer 12-week period grocery inflation stands at 16.8%, with prices rising fastest in markets such as eggs, ambient cooking sauces and frozen potato products.
Morning update
There is little else of note on the markets this morning in what looks like another quiet week.
The FTSE 100 has opened back up 0.2% to 7,599.7pts.
Early risers include Bakkavor, up 4.9% to 97.8p, Hilton Food Group, up 3.9% to 689p and AG Barr, up 1.9% to 485.5p.
Fallers include Ocado, down 3.8% to 418.3p, Glanbia, down 3.8% to €13.08 and Fever-Tree, down 2.1% to 1,298p.
Yesterday in the City
The FTSE 100 opened the week falling 0.7% back to 7,588.5pts.
Fallers included Ocado, which lost 5.9% after its gains last week to close at 434.9p.
Other fallers included Naked Wines, down 4.4% to 107.8p, SSP Group, down 2.8% to 257.4p, C&C Group, down 2.7% to 129.6p, Cranswick, down 2% to 3,250p, Just Eat Takeaway.com, down 1.9% to 1,134p and Nichols, down 1.8% to 1,065p.
The day’s risers included Bakkavor, up 1.3% to 93.2p, Associated British Foods, up 1% to 1,945p, Coca-Cola Europacific Partners, up 0.8% to €60.50, Fever-Tree, up 0.7% to 1,326p and B&M European Value Retail, up 0.6% to 556.6p.
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