Grocery price inflation rose by 17.3% in the four weeks to 16 April 2023, down marginally on the 17.5% recorded in the previous four weeks, according to new data from Kantar.
The data also reveals that take-home grocery sales grew by 8.1% over the month to mid-April.
Fraser McKevitt, Head of Retail and Consumer Insight, Worldpanel Division UK, said: “The latest drop in grocery price inflation will be welcome news for shoppers but it’s too early to call the top. We’ve been here before when the rate fell at the end of 2022, only for it to rise again over the first quarter of this year.
“We think grocery inflation will come down soon, but that’s because we’ll start to measure it against the high rates seen last year. It’s important to remember, of course, that falling grocery inflation doesn’t mean lower prices, it just means prices aren’t increasing as quickly.”
The Kantar data shows that after 10 months of double-digit price growth, the British public is continuing to turn to own label lines to help manage spending. Own label lines are still growing at 13.5% this period suggesting shoppers are finding better value for money on these shelves.
The very cheapest value own label lines are doing even better, with sales soaring by 46% versus a year ago, the data reveals. These products now find their way into nearly one in five baskets. Meanwhile, branded sales are going up but more slowly at 4.4%.
Kantar’s figures also reveal it was a record-breaking Easter, with 38 million chocolate eggs and treats bought in the week running up to Easter Sunday, five million more than last year. Households on average spent nearly £14 on Easter chocolate over the month, which works out at around six packs on average.
In addition, the number of hot cross bun packs sold rose by 5%, while 3.4 million households picked up a lamb joint for the traditional seasonal roast during the four weeks.
Looking forward, McKevitt said: “Shoppers are likely to be looking ahead to the three bank holidays in May, including for the Coronation, which could impact grocery sales.
“We’ve recorded bumps in supermarket sales for previous major royal events. During the week of the Platinum Jubilee last year, they were £87m higher than the average in 2022.”
