UK grocery inflation has slowed this month to its lowest level since September 2021, coinciding with the fastest rise in monthly supermarket shopper numbers so far this year, industry data showed on Tuesday.
Market researcher Kantar said annual grocery price inflation was 1.6% in the four weeks to July 7, versus 2.1% in the previous four-week period.
It said prices were falling fastest for products such as toilet tissues, butter and dog food but still rising for items such as vitamins, minerals and supplements, chilled fruit juices and drinks and deodorants.
Kantar's data, the most up-to-date snapshot of UK consumer behaviour published since the July 4 election, showed take-home grocery sales increased 2.2% in value terms over the four-week period year-on-year.
Kantar highlighted a boost to sales of beer, crisps and snacks from the Euro 2024 soccer championship.
It said Britons made 2% more trips to the supermarket this period than they did one year ago, and with pressure on pockets easing, sales of branded products increased by 3.6%, outpacing own-label items at 2.7%.
Over the 12 weeks to July 7, online supermarket Ocado (OCDO.L) was again the fastest-growing grocer with sales up 10.7% year-on-year, Kantar said.
Market leader Tesco (TSCO.L) saw growth of 4.6%, hitting a market share of 27.7%, its biggest share gain since November 2021. No. 2 Sainsbury's (SBRY.L) saw growth of 4.7%.
UK supermarkets' market share and sales growth (%)
Source: Kantar
