Grocery price inflation has fallen to 5.3%, marking the lowest rate since March 2022 and a decrease of 1.5 percentage points from January, according to the marketing data and analytics company Kantar. Take-home grocery sales grew in value by 5.1% for the four weeks to 18 February 2024.
“Things are looking up for shoppers this February,” said Tom Steel, strategic insight director at Kantar. “Consumers have been navigating a grocery inflation rate of more than 4% for two years now, so this latest easing of price rises is especially welcome.
“Though there’s been lots of discussion about the impact the Red Sea shipping crisis might have on the cost of goods, supermarkets have been pulling out all the stops to keep prices down and help people manage their budgets. This month, Morrisons became the latest retailer to launch a price match scheme with Aldi and Lidl, after Asda made the move in January. More generally, we saw promotions accelerate this month after a post-Christmas slowdown. Consumers’ spending on offers increased by 4% in February, worth £586 million more than the same month in 2023. Sainsbury’s and Iceland’s efforts paid off in particular, and they were the only retailers to attract more shoppers through their doors. The battle between supermarkets’ own-label lines and brands also remains fierce. Own-label nipped ahead this month, growing sales by 5.5% versus branded products at 5.3%.”