The UK’s grocery price inflation has dropped to 11%, its lowest point in over a year, marking the seventh consecutive month of decline. According to the latest data from Kantar, take-home grocery sales for the four weeks to 1 October 2023 rose by 9.1%, compared with last year.
The analysis shows that the increase in the total spend on offers is also helping to offset the impact of inflation, as the proportion of groceries bought on deal increased to 26.5% in the latest 12 week period, the highest level since June 2022.
Strategic insight director at Kantar Tom Steel said: “Grocery price inflation is still very high, but shoppers will be relieved to see the rate continuing to fall. For the first time since last year, the prices of some staple foods are now dropping and that’s helping to bring down the wider inflation rate. Supermarkets are looking at all the different ways they can deliver value at the tills and while the emphasis for some time has been on everyday low prices, the retailers are starting to get the deal stickers out again. Spending on promotions made up over a quarter of all sales in the latest 12 week period at 26.5%, the highest level since June 2022.”
As for general inflation, the UK saw a surprise fall in August to 6.7%, largely driven by slowing food prices, as the cost of living plunged to its lowest level in a year and a half.