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Daily Mirror
Daily Mirror
Business
Levi Winchester

Grocery price inflation falls to lowest monthly rate this year - but still remains high

Grocery price inflation has fallen to its lowest monthly rate this year, according to new data.

Inflation dropped to 16.5% for the four weeks to June 11, down from 17.2% the previous month and a further decline from the record 17.5% recorded in March.

But analysts at Kantar, which tracks supermarket sales and prices, said the rate of grocery price inflation is still at the sixth highest monthly figure since 2008.

Almost 70% of households are either "extremely" or "very worried" about food and drink inflation, compared to just over two thirds when asked the same question in January.

It narrowly remains the second most significant concern behind rising energy bills, according to Kantar.

Customers have been switching to cheaper own label lines to try and save money, with sales up 41% compared to last year, as well as making changes to how they eat and cook.

There were 4% fewer meals made using an oven, while microwaved meals rose by 8%.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: "This is the lowest rate of grocery price inflation we've seen in 2023, which will be a relief to shoppers and retailers.

"But prices rising at 16.5% isn't something to celebrate and it's still the sixth highest monthly figure in the past 15 years.

"Price rises are now being compared to the increasing rate of grocery inflation seen last summer, which means that it should continue to fall in the coming months, a welcome result for everyone."

Mr McKevitt added: "People are thinking more and more about what they eat and how they cook as the cost-of-living crisis takes its toll on traditional behaviours.

"The most prominent change we've seen is that people are preparing simpler dishes with fewer ingredients.

“Our data shows that the public are turning away from their oven and increasingly using microwaves, which reflects the shift to simpler cooking."

Ahead of the heatwave, sales of ice cream and mineral water up by 25% and 8% respectively last month - despite prices up 20% and 17% on last year.

Barbecue food has also seen significant price increases, with fresh sausage prices up 16% and fresh burgers 13% more expensive.

Aldi was the fastest growing retailer for the quarter, seeing sales rise by 24.6% to a record market share of 10.2%.

Lidl saw its sales growth increase by 23.2% to take 7.7% of the market.

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