The price of beef was among the biggest risers last month
(Picture: AFP via Getty Images)Grocery inflation has hit a joint nine-year high of 4.3% as price rises overtake the coronavirus pandemic as the big factor influencing supermarket sales.
Data from market research firm Kantar showed that, apart from a period at the start of the pandemic when supermarkets cut promotional deals to maintain availability, growth of supermarket good prices in February was the its been highest since September 2013.
Prices were rising fastest for things like savoury snacks, fresh beef and cat food, and falling for bacon, beer and lager, and spirits.
Grocery inflation is accelerating. For the 12 weeks to February 20, it was 3.5%.
Supermarkets experienced rapid sales growth during the height of the pandemic as lockdown orders forced people to concentrate their spending on groceries, rather than eating out.
But Kantar’s data showed households spent on average £26.07 less at supermarkets in February, as reduced Covid restrictions increased spending on food in cafés, restaurants and pubs.
Family budgets are also facing more pressure, with rising energy bills and record fuel prices squeezing household spending. Inflation hit a fresh 30-year high of 5.5% in January.
Own label sales did better than brands for the first time in three months, Kantar found, suggesting shoppers are choosing more wallet-friendly options.
And budget retailers continue to grow their share of the market, with Aldi and Lidl the fastest growing supermarkets in the period, both increasing their sales by 3.3%.
Fraser McKevitt, head of retail and consumer insight at Kantar, warned that there could be more pain to come on pricing.
“Ongoing supply chain pressures and the potential impact of the conflict in Ukraine are set to continue pushing up prices paid by consumers,” he said.
Online sales over the past month were down by almost 20% year-on-year, with 835,000 fewer people buying groceries online over the past four weeks.
