UK grocery price inflation eases to 5.3% in February

27th Feb 2024 07:18

(Sharecast News) - Research company Kantar's latest supermarket share update showed that grocery price inflation had dropped to 5.3% in February, its lowest rate since March 2022.

Kantar said grocery inflation now stands at 6.1% for the 12 weeks ended 18 February, with prices rising fastest in markets such as sugar confectionery, chocolate confectionery and frozen potato products, and falling fastest in butter, milk and toilet tissues.

Value was also said to still be a priority for Britons, who spent £586.0m more on promotions than during the same month last year. Valentine's Day also saw shoppers celebrate on a budget, with £36.0m spent on meal deals costing £10 or more in the week before 14 February. Alcohol sales rebounded strongly after the end of dry January, up by 18% in volume terms.

Kantar also noted that Lidl remained the fastest-growing grocer in the UK for the sixth month in row, and the only retailer to see double-digit growth over the last three months.

Kantar's strategic insight director, Tom Steel, said: "Things are looking up for shoppers this February. Consumers have been navigating a grocery inflation rate of more than 4% for two years now, so this latest easing of price rises is especially welcome.

"Though there's been lots of discussion about the impact the Red Sea shipping crisis might have on the cost of goods, supermarkets have been pulling out all the stops to keep prices down and help people manage their budgets."

Reporting by Iain Gilbert at Sharecast.com