UK grocery prices rise faster as shoppers lean on deals
Grocery prices in Britain rose 2.5% over the past year, up from 2.3% in the previous month, according to new industry figures. Shoppers are relying more heavily on special offers as worries about petrol costs and the upcoming autumn Budget continue to grow. Chocolate prices, however, have fallen ahead of Halloween.
Grocery prices in Britain are rising a little faster, and shoppers are leaning on special offers to cope, The Independent and The Grocer reported on Tuesday.
Prices at the tills were 2.5% higher than a year ago in the four weeks to Oct. 4, according to data firm Worldpanel by Numerator. That is up from 2.3% in its last update, both outlets reported.
Total grocery sales rose by just 1%, The Grocer reported. Because prices rose faster than spending, The Grocer said the figures point to shoppers buying a smaller volume of goods overall.
Spending on promotions was more than a quarter of a billion pounds higher than a year earlier, suggesting that special offers have become a key tool for households trying to control their grocery bills, both outlets reported.
"With the autumn Budget fast approaching, the cost of living continues to weigh heavily on the minds of shoppers," said Fraser McKevitt of Worldpanel, both outlets reported. He said more than half of shoppers are very or extremely worried about petrol prices.
There was some welcome news for households preparing for Halloween, as chocolate confectionery prices are 3% lower than a year ago, The Independent reported. About 1.2 million households bought a pumpkin over the latest four weeks, an increase of 10% compared with the same period last year, it said.
Among the traditional supermarkets, Lidl grew fastest, with sales up 7.1% and its market share climbing to 8.6%, both outlets reported. Asda was the only major grocer whose sales declined, falling 0.5% as its market share slipped to 11.5%, The Grocer reported.
Tesco still holds the biggest share of the market at 27.8%, both outlets reported, while Aldi holds 10.5% after its sales grew by only 0.4%. Grocery sales at Marks & Spencer, which Worldpanel does not count as a grocer because it also sells clothing and home goods, rose by 14.9%, both outlets said. The Independent reported that sales at online specialist Ocado increased by 12.4%, well ahead of overall online sales.
What we know: Grocery price inflation in Britain rose to 2.5%, and shoppers are using more deals.
What we don't: How the autumn Budget will affect household spending.
Where outlets agree The Independent and The Grocer both report that Worldpanel found UK grocery price inflation rose to 2.5% from 2.3%, with shoppers spending more on promotions.
Where they differ The outlets cited here report the same key facts so far.