By Michael Susin
U.K. grocery-price inflation in November fell for the ninth month in a row, dropping to its lowest rate since July 2022, as promotions and own-label lines are helping to keep prices low, market-research firm Kantar said in its latest report.
Annual grocery inflation was 9.1% for the four-week period to Nov. 26, down from 9.7% in October, it said on Tuesday.
In March 2023, grocery-price inflation reached a record high of 17.5%.
The fall is being supported by retailer’s emphasis on own-label lines and promotions, as spending on offers hit its highest level in over two years at 28.4%, Kantar head of retail Fraser McKevitt said.
Lidl was once again the fastest-growing grocer, with sales up by 14.2% over the quarter to Nov. 26, bringing its market share to a record 7.8%. Aldi sales rose 11.1%, with its total share of the market now standing at 9.6%.
However, Sainsbury’s had the strongest growth in market share since March 2013, up by 0.4 percentage points to 15.6%, driven by a 10.2% increase in sales.
Looking ahead to the Christmas key period, grocery sales are expected to surpass GBP13 billion ($16.42 billion) for the first time, Kantar said.
“The scene is set for record-breaking spend through the supermarket tills this Christmas. The festive period is always a bumper one for the grocers with consumers buying on average 10% more items than in a typical month. Some of the increase, of course, will also be driven by the ongoing price inflation we’ve seen this year,” McKevitt added.
Moreover, shoppers will see some items of the traditional Christmas meal below the inflation rate, with a dinner for four people this year standing at GBP31.71.
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