British grocery inflation saw a slight easing for the second month in a row in May, as indicated by industry data released on Tuesday. However, despite this moderation, the inflation levels remained dangerously close to record highs. Unfortunately, this offers little comfort to consumers who are currently struggling with the ongoing cost-of-living crisis.
According to market researcher Kantar, the annual grocery inflation for the four-week period ending on May 14 stood at 17.2%. Although this figure represented a slight decrease from the previous data set in April, which recorded an inflation rate of 17.3%, it still remained the third highest rate recorded since 2008.
Kantar reported that UK households are now confronted with an extra £833 ($1,051) on their yearly shopping expenses if they fail to modify their consumption habits to reduce costs. The research revealed that prices are escalating most rapidly for items like eggs and ambient cooking sauces.
The latest data from Kantar in May offers the most current overview of grocery inflation in the UK. In previous official data released last month, overall consumer price inflation decreased to 10.1% in March. However, the prices of food and non-alcoholic beverages surged by 19.1% compared to the previous year, marking the largest increase since August 1977. The official data for April will be made available on Wednesday, providing further insights into the ongoing situation.
Earlier this month, the Bank of England expressed its anticipation of a slower decline in overall inflation than initially projected, primarily attributed to larger and enduring increases in food prices. Food retailers have indicated their expectations of a general price rise throughout 2023; however, they anticipate a gradual decline in the rate of inflation as the year progresses.
Certain products that experienced significant price increases, including milk, butter, bread, pasta, vegetable oil, and sunflower oil, have begun to witness price declines. Kantar reported that the average price of four pints of milk has decreased by 8 pence compared to the previous month, but emphasized that prices remain 30 pence higher than the same period last year. The report reiterated that consumers are mitigating higher prices by opting for more own-label products, which saw a sales growth of 15.2% over the month, nearly double the growth rate of branded products, which rose by 8.3%.
According to Kantar, there was a 10.8% increase in overall grocery sales compared to the same four-week period in the previous year. During the week of King Charles’ coronation, sales surged even further, rising by 16% and resulting in an additional £218 million spent. German-owned discounters Aldi and Lidl maintained their position as the fastest-growing grocers, with sales growth of 24.0% and 23.2% respectively.
