Grocery price inflation fell for the second month in a row – but is still adding an extra £833 to the average consumer’s annual bill, according to the latest industry figures.
Prices over the four weeks to 14 May were 17.2% higher than a year ago, down from April’s 17.3%, but was still the third-fastest rate of grocery inflation reported since 2008, data from Kantar showed.
Fraser McKevitt, head of retail and consumer insight at Kantar, said the prices would add an extra £833 to the average household’s annual grocery bill if consumers did not skirt higher prices by choosing more own-label goods.
However, supermarket own-label prices grew 15.2% last month, almost double that of branded products, which rose by 8.3%.
The average cost of four pints of milk has come down by 8p since last month, but is still 30p higher than this time last year at £1.60. Several supermarket chains have trumpeted price cuts for milk recently.
Grocery sales were boosted by 16% during the week of the coronation, with an extra £218mln passing through the tills with sparkling and still wine especially popular. Sales of these products climbed by 129% and 33% respectively.
Waitrose was a beneficiary from the celebrations with sales up by 4.8% over the 12 weeks, the highest rate of growth the retailer has achieved since April 2021. Its market share is now 4.6%.
Meanwhile, Aldi was the fastest growing grocer this month, with sales up by 24.0%, while Lidl’s sales increased by 23.2%.
The two discounters now account for 17.8% of the market, with Aldi’s share at 10.1% and Lidl at 7.7%.
Asda grew by 10.6% and its market share now stands at 13.9%, a rise of 0.1 percentage points when compared to the same 12 weeks last year, while Morrisons took an 8.7% share this period, its third consecutive period of sales growth.
The UK's largest supermarket, Tesco PLC (LSE:TSCO), saw sales increase by 8.9%, giving it a 27.1% share of the market, while sales at J Sainsbury PLC (LSE:SBRY) rose by 10.5%, leaving its market share steady at 14.8%.
Convenience specialist Co-op nudged up its sales by 2.9%, Iceland by 9.1% and online only retailer Ocado by 5.6%.
“Food inflation remains at unsustainable levels and soaring prices are putting intolerable pressure on household budgets for millions of people," said Rocio Concha, director of policy and advocacy at consumer group Which?
“It’s good news the government has committed to reviewing pricing rules, but this must be undertaken as soon as possible as much clearer pricing is vital in enabling shoppers to compare prices and find the best value products. Supermarkets should also be making it easier for people by urgently committing to stocking essential budget ranges in all their stores, particularly in areas where people are most in need.”