UK grocery price inflation slows as retailers launch pre-Christmas promotions | Supermarkets

The pace of UK food inflation slowed last month as retailers stepped up pre-Christmas promotions, providing some relief to consumers bracing for further tax increases in this month’s budget.

Grocery inflation stood at 4.7% in the four weeks to November 2, down from 5.2% in the previous four weeks, according to figures from Worldpanel by Numerator, formerly known as Kantar.

Official data published last month showed that overall UK inflation remained steady at 3.8% in September and food inflation was slowing. The next official figures will be released on 19 November, shortly before Chancellor Rachel Reeves announces her budget on 26 November.

Worldpanel said prices rose fastest in markets such as chocolate confectionery, fresh meat and coffee, while falling fastest in household paper, sugar confectionery and dog food.

It was stated that grocery sales increased by 3.2% on an annual basis in the four-week period, while spending on deals increased by 9.4%, compared to a 1.8% increase in full-priced products.

Worldpanel’s head of retail and consumer insight, Fraser McKevitt, said: “Christmas adverts are hitting our screens and the race to the big day is on across the supermarket sector. “Retailers are very conscious of the financial difficulties some households are facing, especially beyond this year’s budget.

“They are keen to show shoppers how they offer value for money, with an emphasis on price discounts rather than multi-buy offers.

“The Grinch isn’t the only one looking to save money, with 30% of consumer spending on promotional items being spent at grocery stores in October; we expect this figure to rise further as we get closer to Christmas.”

Worldpanel data showed strong sales at Ocado, Lidl and Tesco, which recorded a 15.9% increase in sales compared to the previous year; Lidl and Tesco have made significant gains over their rivals so far this year. Asda continued to struggle with a 3.9% drop in sales.