Grocery price inflation has once again decreased, as revealed by data showing that the average price of a pack of butter is now 16p lower compared to a year ago.
According to Kantar analysts, prices at various grocery stores were 11% higher than they were a year ago for the four weeks ending on October 1, marking a decrease from the previous month’s 12.2% inflation rate.
This marks the seventh consecutive reduction in the rate of price increases, following the peak of 17.5% in March. The recent decline was aided by an increase in the percentage of groceries offered at discounted prices, which reached 26.5% over the past 12 weeks, the highest level since June of the previous year.
Tesco, identified by Kantar as the key driver behind the increased promotions, experienced a sales increase of 9.2% during the period. Its market share also saw a slight rise of 0.4 percentage points, reaching 27.4%.
Sales of branded products on offer reached their highest point since January, contributing to a sales growth of 7.3% and narrowing the gap compared to the 10.1% growth of own-label products.
Discounter Lidl emerged as the retailer with the most rapid growth, experiencing a 15.2% increase in sales during the quarter, capturing a 7.6% share of the market.
Despite concerns about the cost of living, consumers once again set them aside to relish the warmth of the joint warmest September on record. This led to a surge in sales for ice cream, burgers, and dips, with increases of 27%, 19%, and 10%, respectively, compared to the same period last year. Additionally, sales of sun care products more than doubled throughout the month.
The summery temperatures had an unexpected impact, causing sales of Christmas puddings and seasonal biscuits to decline by 14% and 29%, respectively, compared to the previous year.
Tom Steel, Strategic Insight Director at Kantar, commented:
“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. Dairy was one of the categories where costs really shot up last autumn but the average price paid for a 250g pack of butter is now 16 pence less than 12 months ago.”
