UK grocery inflation steady at 4.7% – WorldPanel
British households face continued grocery price pressures; Tesco and Sainsbury’s increase market share while Asda declines.
UK – British grocery inflation remained at 4.7% in the four weeks to November 30, according to data from Worldpanel by Numerator, keeping costs high for households entering the Christmas period.
The figures provide an early insight into food price trends ahead of the official UK inflation report due on December 17, representing persistent pressure on consumers.
The Bank of England is monitoring food prices closely because they influence public expectations of overall inflation, while the country’s headline inflation rate fell to 3.6% in October.
Price rises were strongest in chocolate, fresh meat, and poultry, while the cost of sugar confectionery, household paper, and fragrances fell over the same period, Worldpanel reported.
Despite rising prices, overall grocery sales grew by 3.4% year-on-year, suggesting that actual shopping volumes have declined once inflation is considered.
Retailers increased promotional activity to attract shoppers ahead of Christmas, with total spending in December expected to surpass US$18.1 billion, the data indicated.
Promoted items accounted for 31.2% of spending in November, up from 30% the previous year, and the cost of a Christmas turkey dinner for four averaged US$43.28, slightly lower than last year.
Market leader Tesco saw sales rise 4.7% over the 12 weeks to November 30, giving it a market share of 28.3%, while second-placed Sainsbury’s sales grew 5.1% and its share increased to 16.0%.
Third-placed Asda struggled, with sales falling 4.3% and market share dropping to 11.5%, down 90 basis points from the previous year, highlighting ongoing competitive challenges.
Other major supermarkets showed mixed performance, with Aldi maintaining a 10.5% share and 4.1% sales growth, Morrisons slightly declining in share to 8.3%, Lidl rising to 8.1% with 10.2% sales growth, and Ocado increasing its share to 2.2% with 15.8% growth.
Consumer spending remained cautious in November as shoppers awaited the finance minister’s budget, while retailers reported weaker-than-expected Black Friday sales.
