Grocery price inflation in the UK has risen for the first time since March 2023 in another cost of living blow to Britons, according to figures from Kantar.
The market research firm found supermarket prices were up 1.8 per cent a year ago over the month to August 4, a slight jump from the 1.6 per cent in July,
This could be an ominous warning ahead of the Office for National Statistics (ONS) publishing the latest consumer price index (CPI) inflation figures this week.
The rise comes after 17 consecutive months of falling rates from a peak of 17.5 per cent to its lowest point since September 2021 last month.
British consumers saw prices increase in 182 product categories, with 89 types of products seeing prices fall.
For example, kitchen towels and baked beans are seven per cent and five per cent cheaper than in 2023, respectively.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Fraser McKevitt, the head of retail and consumer insight at Kantar, broke down what July’s figures reveal about the price of the supermarket shop.
He explained: “Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly.
“While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.
“With this kind of pricing spread, shoppers will find that the type of product they’re putting in their baskets will really dictate how much they pay.”
Based on Kantar’s data, shoppers are continuing to take advantage of promotions offered by grocers to help keep prices down, including schemes such as the Tesco Clubcard.
Spending on deals went up by 15 per cent while sales of products at their usual price saw no increase.
Even with external pressures, wine sales were up by 35 per cent, while nuts and crisps rose by 60 per cent and 10 per cent during the Olympics opening ceremony.
On the day of the Euro 2024 final, football balls spent £10million on beer.
Ice cream and burger sales increased by 23 per cent and 32 per cent, respectively, compared to the year before.
Cough lozenges went up by 28 per cent in July with consumers being hit with Covid and hay fever
LATEST DEVELOPMENTS:
Supermarkets
gbnews
Sainsbury’s recorded its largest year-on-year market share gain since July 1997, rising by 0.5 percentage points over the quarter compared with the same period last year.
It was again the fastest growing of the traditional supermarkets, with sales increasing by 5.2 per cent.
Tesco continued its streak of winning market share every month since August 2023, rising to 27.6 per cent while increasing sales by 4.9 per cent.
Sales rose by 11.3 per cent at online-only retailer Ocado, continuing its six-month run as the fastest-growing grocer.