Kantar: ‘Second-Sharpest Monthly Fall’ In Prices Recorded In UK by 2.2%
According to market researcher Kantar, grocery prices in the UK have experienced the “second-steepest monthly decline” since 2008, as the prices of essential goods begin to decrease.
In the four weeks leading up to August 6, Kantar reported that grocery price inflation in the UK dropped by 2.2 percentage points, reaching 12.7%.
During the same period, overall take-home grocery sales registered a 6.5% increase, a decline from the 10.4% growth observed a month prior.
Fraser McKevitt, Head of Retail and Consumer Insight at Kantar, remarked, “Although prices remain elevated compared to last year, consumers can find some relief in the fact that certain essential items are gradually becoming more affordable as compared to earlier in 2023.
For instance, the price of four pints of milk decreased to £1.50 from £1.69 in March, and the average cost of a liter of sunflower oil is now £2.19, which is 22 pence lower than in the spring.”
During the four-week period, private-label products maintained their popularity among shoppers, with own-brand sales increasing by 9.7%. In contrast, branded products saw a growth of 6.4%.
Aldi Holds the Title of Fastest-Growing Retailer
When evaluating the performance of the UK’s major grocers.
Kantar indicated that Aldi continued to be the fastest-growing retailer for the fourth consecutive month.
Over the 12 weeks leading up to August 7, Aldi achieved a remarkable 21.2% surge in sales, in comparison to the same period in the previous year.
Aldi has secured a market share of 10.2%, while its competitor discounter Lidl holds 7.7%, thanks to a remarkable 19.8% year-on-year sales increase.
Tesco and Sainsbury’s, the UK’s two leading retailers, have surpassed the overall market performance this month, experiencing growth rates of 9.5% and 9.3%, respectively, according to Kantar.
In a separate announcement earlier today, retailer Marks & Spencer unveiled an impressive 11% surge in food sales during the initial 19 weeks of its financial year.