Grocery inflation eases for second consecutive month

Falling milk costs have helped drive grocery inflation decrease for a second consecutive month, in accordance with business knowledge.

Kantar Worldpanel, which tracks grocery store gross sales and costs, measured the annual price of grocery inflation at 17.2% over the 4 weeks to 14 May.

That was down from 17.3% within the earlier four-week interval however nonetheless on the third-highest degree because the 2008 monetary disaster.

The price of meals and different necessities has proved a drag on the price of dwelling disaster this yr as energy-led value will increase proceed to filter via the availability chain.

The price of 4 pints of milk, which had risen as a consequence of larger feed, manufacturing and transportation prices, fell by 8p over the 4 weeks.

But Kantar added that costs had been nonetheless a lot larger than they had been 12 months in the past, at £1.60 at present in comparison with £1.30.

The report mentioned the dairy aisle had change into a battle-ground within the grocery store value warfare, with the established chains Tesco, Sainsbury’s, Asda and Morrisons persevering with to face robust competitors from discounters.

Fraser McKevitt, Kantar’s head of retail and client perception, mentioned: “Of course, shoppers are savvy and they’re skirting higher prices by choosing more own-label goods.

“These strains grew by 15.2% this month, virtually double that of branded merchandise which rose by 8.3%.

“However, the gap between own lines and brands is narrowing in most stores, helped in some cases by loyalty discounts.”

Coronation enhance

The report highlighted a £218m raise to enterprise on the tills throughout the week of the King’s coronation, with wine and components for the Coronation Quiche serving to paved the way.

The newest knowledge was launched forward of the official inflation figures on Wednesday, that are tipped to point out the primary client costs index (CPI) measure slipping sharply.

Economists polled by the Reuters information company see the annual price easing to eight.2% in April from the present 10.1%.

Electricity and pure gasoline costs leapt by 40.5% and 66.8% respectively in April 2022, knowledge from Pantheon Macroeconomics confirmed, however held regular final month.

It is hoped that the gradual easing in wholesale power prices this yr will help a slowing within the tempo of meals value will increase as they feed into manufacturing and transport prices.

Regulatory stress to make sure shoppers are being charged honest costs was revealed final week when the Competition and Markets Authority introduced gas and grocery value investigations.

The watchdog shall be searching for proof of so-called “greedflation” – rising costs as a consequence of extreme prices.

Read extra:
Greedflation? There’s no proof supermarkets are profiteering – and for this reason

Food and non-alcoholic drink inflation was measured at 19.1% by the Office for National Statistics (ONS) in March.

That was the very best degree since August 1977.

The Kantar knowledge will go some technique to giving hope that the tempo of value hikes for groceries has roughly peaked.

However, it’s unlikely to present any encouragement that any significant easing of costs for squeezed households is simply across the nook.