Supermarket inflation in Great Britain has eased to its lowest level this year but remains high, forcing people to change how they eat and cook as household budgets are strained, according to the data firm Kantar.
Grocery inflation declined to 16.5% in the four weeks to 11 June, down from 17.2% last month and a record 17.5% in March. It remains at its sixth-highest level since the financial crisis in 2008, Kantar said.
The figures come a day before the official UK data on inflation, which is expected to show an easing to 8.4% in May from 8.7% in April.
Fraser McKevitt, the 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.”
A survey for Kantar found that of consumers’ top five financial worries, rising grocery prices is the only one that they are more concerned about now than at the start of the year.
Almost 70% of households are either “extremely” or “very worried” about food and drink inflation, compared with just over two-thirds in January. It remains the second-biggest concern behind rising energy bills.
Consumers have been switching to supermarkets’ cheaper own-label lines to save money, where sales are up 41% compared with last year, and changing how they eat and cook, Kantar said.
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.”
There were 4% fewer meals made using an oven in the last 12 weeks compared with the same period last year, while microwaved meals rose by 8%, and there was a rise in food prepared with toasters and grills.
Meanwhile, the proportion of products sold for £1 has almost halved in a year, from 9% to 5%.
after newsletter promotion
McKevitt said: “Traditionally, ‘round-pound’ prices have been attractive to shoppers, who find them easier to relate to and practical as well with no leftover change. But, with retailers eager to offer value and cash buying less popular, £1.25 has emerged as an increasingly important price point. It now vies with £2 as the second most popular price for a grocery item.”
With the advent of warm weather, consumers have been buying more ice-cream and mineral water, with sales up by 25% and 8% respectively last month, despite price increases of 20% and 17%.
Barbecue food has also gone up in price, with fresh sausage prices up 16% and fresh burgers 13% more expensive.
Aldi was the fastest-growing retailer in the past four months as people turned to the discount supermarkets, posting a sales rise of 24.6% to a record market share of 10.2%. Lidl’s sales growth was only slightly behind its fellow German discounter, increasing sales by 23.2% to take 7.7% of the market.
