Food price inflation has dipped but it is too soon to call the peak, according to the latest figures from market research firm, Kantar.
Kantar said consumers are still paying 17.3% more than this time last year at UK supermarkets but that is slightly lower than last month’s 17.5% figure.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The latest drop in grocery price inflation will be welcome news for shoppers but it’s too early to call the top.
"We’ve been here before when the rate fell at the end of 2022, only for it to rise again over the first quarter of this year.
"We think grocery inflation will come down soon, but that’s because we’ll start to measure it against the high rates seen last year. It’s important to remember, of course, that falling grocery inflation doesn’t mean lower prices, it just means prices aren’t increasing as quickly.”
The data covering the four weeks to 16 April showed demand for own label goods has soared, up 13.5% year on year, with the very cheapest value lines surging by 46%.
Amid rising prices, both Aldi and Lidl hit new record market shares over the latest 12-week period at 10.1% and 7.6% respectively.
Lidl was the fastest growing grocer with sales increasing by 25.1%, while Aldi is just behind on 25.0%.
Fraser McKevitt expanded: “Consumers are continuing to shop around, visiting at least three major retailers every month on average. The discounters have been big beneficiaries of this, with Aldi going past a 10% market share for the first time this month."
The three largest grocers continued to grow at similar rates in the 12 weeks to 16 April 2023, Kantar said.
Asda led the pack with sales up 8.8% year on year, giving the retailer a 14.0% share of the market. Tesco and Sainsbury’s weren’t far behind with their sales increasing by 8.0% and 8.7%, claiming 27.0% and 14.9% of the sector respectively.
Morrisons’ sales continued to increase, and it now holds an 8.7% share of the market. Co-op’s market share stands at 5.7%, with sales growing by 2.7% in the latest 12 weeks.
Waitrose’s sales increased by 3.2%, its best performance since June 2021, pushing its market share to 4.5%. Iceland matched the 12-week market growth rate of 9.4%, maintaining its level of share at 2.2%.
Ocado outpaced the overall online market, increasing sales by 8.7%.