Grocery price inflation has fallen to 5.3%, marking the lowest rate since March 2022 and a decrease of 1.5 percentage points from January, new data reveals.
Kantar’s latest figures show take-home grocery sales grew in value by 5.1% for the four weeks to 18 February 2024.
Tom Steel, Strategic Insight Director, Worldpanel Division, UK, 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.”
He added: “We saw promotions accelerate this month after a post-Christmas slowdown. Consumers’ spending on offers increased by 4% in February, worth £586m more than the same month in 2023.”
Kantar’s data reveals total alcohol sales jumped up by 18% in volume terms versus the previous month, with consumers buying 28% more wine and 16% more beer and lager. Red wine was particularly popular, with eight million more bottles bought this month than in January.
The figures also show that the battle between supermarkets’ own-label lines and brands also remains “fierce”. Own-label nipped ahead this month, growing sales by 5.5% compared to branded products at 5.3%.
In addition, the research shows Britons still found room within their budgets to celebrate on Valentine’s Day. In the seven days before, steak and boxed chocolate sales rose by 12% and 16% compared with last year.
However, shoppers were clearly on “the hunt for value”, with £36m spent on meal deals costing £10 or more in the week leading up to 14 February. This figure is slightly down on 2023 when spend hit £43m, but that’s because consumers chose to make more savings this year through price cuts. Sales of chilled ready meals and desserts on promotion did particularly well this year.
