Grocery price inflation continued its downward trend in April, reaching its lowest level in over a year as supermarkets ramped up promotional deals. According to data from Kantar, grocery prices were 3.2% higher than a year ago in the four weeks to April 14th, a significant drop from the 4.5% increase recorded in March. The decline was driven by an increase in the number of items bought on offer, which accounted for 29.3% of supermarket sales, the highest level outside the Christmas period since June 2021. This increase in promotional activity resulted in estimated savings of £1.3 billion for British shoppers, or £46 per household. The overall increase in grocery sales was attributed to this year’s early Easter, which boosted confectionery sales by over £100 million. The number of chocolate eggs sold during the Easter period was 3% higher than last spring, with 37% of consumers purchasing one during the week leading up to and including Easter Sunday. Hot cross buns were even more popular, with 45% of Britons buying them. Despite the emphasis on deals, the prices of sweets and chocolate, along with chilled fruit juices and drinks, remained among the fastest risers in supermarkets. Fraser McKevitt, head of retail and consumer insight at Kantar’s Worldpanel division, said: “This emphasis on offers, coupled with falling prices in some categories like toilet tissues, butter, and milk, has helped to bring the rate of grocery inflation down for shoppers at the till.” These findings come after data from the Office for National Statistics (ONS) last week showed that overall inflation fell to 3.2% in March, partly due to easing food prices. The latest Kantar data also revealed that Ocado was the fastest-growing grocer, with sales increasing by 12.5% in the 12 weeks to April 14th. This growth outpaced the overall online market, which grew by 6.8%. Lidl was the fastest-growing supermarket, boosting sales by 9.1% over the same period, giving it a total market share of 8%. Fellow discounter Aldi regained the 10% market share it last held in September 2023, increasing sales by 2.8%. Tesco and Sainsbury’s saw sales growth of 6.8% and 5.9% respectively, while spending at Morrisons increased by 3.8%. Waitrose and Iceland both recorded sales growth of 3.7%.
Grocery Price Inflation Continues to Fall, Driven by Promotions
