Grocery inflation eases for second consecutive month

Falling milk costs have helped drive grocery inflation decrease for a second consecutive month, based on business information.

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 stage because the 2008 monetary disaster.

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

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

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

The report mentioned the dairy aisle had develop into a battle-ground within the grocery store worth 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 traces grew by 15.2% this month, nearly 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 increase

The report highlighted a £218m elevate to enterprise on the tills in the course of the week of the King’s coronation, with wine and substances for the Coronation Quiche serving to prepared the ground.

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

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

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

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

Regulatory stress to make sure customers are being charged truthful costs was revealed final week when the Competition and Markets Authority introduced fuel and grocery price investigations.

The watchdog can be on the lookout for proof of so-called “greedflation” – rising costs as a result of extreme prices.

Read extra:
Greedflation? There’s no evidence supermarkets are profiteering – and this is why

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

That was the best stage since August 1977.

The Kantar information will go some method to giving hope that the tempo of worth hikes for groceries has kind of peaked.

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