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Food price inflation edges up

Food price inflation edges up
Emma Lunn
Written By:
Posted:
08/10/2024
Updated:
15/10/2024

Average supermarket prices are now 2% more expensive than a year ago, according to Kantar.

The findings, which come ahead of the Chancellor’s Autumn Budget on 30 October, showed that spending on promotional grocery items continued to rise, climbing by 7.4% in September as households sought to manage their finances. In comparison, full-price sales nudged up by 0.3%.

Grocery price inflation increased slightly to 2% during the four weeks to 29 September, up from 1.7% last month.

Despite prices rising, supermarkets are embroiled in a battle for value when it comes to essentials. The average price paid for toilet and kitchen roll is 6% lower year-on-year, for example, while dog and cat food are 4% and 3% cheaper respectively.

Much of the UK saw record monthly rainfall in September, impacting how people shop.

Fraser McKevitt, Kantar’s head of retail and consumer insight, said: “The unusually wet weather this September had the nation rushing for those classic warming staples. Hot chocolate sales surged by 28%, soup by 10% and home baking by 7% as people looked to stave off the autumn blues.

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“Halloween seems to be on some shoppers’ minds early, and retailers will be hoping for a spooky season sales boost. Pumpkins are flying off the shelves, with sales nearly doubling last September’s figures, at just under £1m over the last four weeks. Sugar confectionery has also seen a 9% lift, with sales expected to ramp up further this month as trick-or-treating approaches – confectionery sales were 16% higher in the second half of October last year.”

Ocado and Lidl are fastest growing retailers

September saw Britain’s biggest supermarket Tesco achieve its largest share since December 2017. It now takes 28% of the market, up from 27.4% a year ago. Sainsbury’s sales increased by 5.1%, with its market share stepping up 0.4 percentage points to 15.2%. Asda’s hold of the market is now 12.6%.

Ocado was the fastest growing grocer for the eighth month running, pushing its sales up by 10% over the past 12 weeks. The online specialist’s market share grew by 0.1 percentage points to 1.8%. The overall online market expanded by 3.5% over the 12 weeks, now worth £3.7bn, with 22.1% of households shopping online.

Spending through Lidl’s tills climbed by 8.8%, with the discounter adding 0.5 percentage points to its share of the market – bringing it to 8.1%. Sales at Aldi, Britain’s fourth-largest retailer, accounted for 9.8% of spending at the grocers. Meanwhile, Morrisons makes up 8.6% of the market, the same proportion as a year ago.

The market share of Waitrose and Iceland held steady at 4.6% and 2.2% respectively. Convenience retailer Co-op now has a 5.9% share.