UK GROCERY inflation eased to 4.0 per cent in the four weeks to January 25, its lowest level since April last year, according to data from market researcher Worldpanel by Numerator released on Tuesday.
The figure was down from 4.3 per cent in the previous report.
The Worldpanel data offers an early signal on pricing pressures ahead of official UK inflation figures due on February 18.
The Bank of England is monitoring food prices closely, saying they play a role in shaping overall inflation expectations.
Britain’s headline inflation rate rose to 3.4 per cent in December, the highest among Group Seven economies.
Worldpanel said UK grocery sales increased 3.8 per cent year-on-year in value terms over the four-week period, but fell in volume terms once inflation is taken into account.
VALUE FRONT OF MIND FOR UK CONSUMERS
“While grocery sales continue to grow and inflation eased to its lowest level in months, value remained front of mind for many – with own label hitting a record high, accounting for more than half of all grocery spend,” said Fraser McKevitt, head of retail and consumer insight at Worldpanel.
Over the 12 weeks to January 25, market leader Tesco reported sales growth of 4.4 per cent year-on-year, with its market share rising 20 basis points to 28.7 per cent. Sainsbury’s, the second-largest grocer, saw sales rise 5.3 per cent, lifting its market share to 16.2 per cent.
Lidl GB remained the fastest-growing bricks-and-mortar retailer, with sales up 10.1 per cent. Online supermarket Ocado was the fastest-growing retailer overall, with sales rising 14.1 per cent.
Asda continued to lose ground, with sales down 3.7 per cent and market share falling 80 basis points year-on-year to 11.5 per cent.
(With inputs from Reuters)
