New analysis shows how prices have changed in the past 12 months
The cost of living crisis has been eased slightly for families as grocery price inflation drops to 1.7 percent, with some essentials now cheaper than they were a year ago. A fresh analysis of sales and prices has highlighted reductions on items such as toilet rolls, dog food and bottles of cola over the past year at major supermarkets including Tesco, Sainsbury’s, Asda, Morrisons, Aldi and Lidl.
However, certain products continue to see significant price increases, including chocolate, chilled fruit juices and health supplements like vitamins and minerals. The current grocery price inflation rate of 1.7 percent is a stark contrast to the peak of approximately 19 percent in March last year, during the height of the cost of living squeeze sparked by Russia’s invasion of Ukraine.
The new figures have been provided by retail analysts at Kantar, who revealed that nearly 60 percent of people remain concerned about the rising cost of living, with food prices being a primary worry, second only to energy bills. As a result, more individuals are choosing to eat at home rather than dine out at restaurants, which has proven beneficial for the sales and profits of large supermarkets.
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Fraser McKevitt, head of retail and consumer insight at Kantar, examined supermarket sales in light of the recent excitement surrounding the Oasis reunion and concerts. He commented to say: “An Oasis ticket wasn’t the only thing the country was queuing up for this month several British staples have become even more popular today than they were 15 years ago.
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“We’re buying more oven chips now than the same four week period back in 2009, with a supersonic sales jump of 44 percent by volume, while take-home beer and lager sales have nudged up by 12 percent.”
The return to school for the nation’s children has seen a surge in sales of lunchbox favourites. For instance, fromage frais and cereal and fruit bars both saw a 14 per cent increase in sales, while chocolate biscuit bars experienced a 12 percent rise. Looking forward, Kantar suggests that retailers and brands will be keenly watching how the Chancellor’s Autumn Budget could affect household finances.
Mr McKevitt stated: “Despite grocery price inflation easing back to 1.7 percent over the last four weeks, shoppers’ financial confidence hasn’t risen with it. Memories of the last two years remain strong, with nearly 60 percent of shoppers still very or extremely concerned about rising grocery prices.*The proportion of sales made via some sort of deal has increased for 16 months in a row. More than half of all grocery trips include some kind of deal, and this proportion rises as the trolley gets bigger.”
Kantar revealed that online grocer Ocado, which stocks Marks & Spencer products, continues to record the fastest growth in annual sales at 12.9 percent. Lidl’s sales growth was the second highest, with a 9.1 percent increase in revenue. Sainsbury’s reported a rise of 5.7 percent, Tesco saw an increase of 5.3 percent, Iceland had a 4.4 percent increase and Waitrose experienced a 4 percent rise.
In contrast, Asda suffered a surprising drop in sales of 5.6 percent, as customers have been put off by the condition of its stores, staff shortages and poor stock availability. The company has promised to invest millions of pounds to address these issues.
