UK grocery price inflation has softened to a 30-month low, according to the latest industry data.
The rate of price increase by supermarkets eased to 3.2% for the four weeks to 14 April from 4.5% per cent last month, research from Kantar found, the lowest rate since November 2021.
Supermarket chains have significantly stepped up promotional activity, with grocery items bought as part of offers making up 29.3% of industry sales in the period, the most since June 2021.
Kantar has noted a steady growth in promotions over the past 11 months, said head of retail and consumer insight, Fraser McKevitt.
“This emphasis on offers, coupled with falling prices in some categories like toilet tissues, butter and milk, has helped to bring the rate of grocery inflation down for shoppers at the till,” McKevitt said.
Easing food price inflation was the main reason for the easing of overall UK inflation in last week's March data from the Office of National Statistics, where the consumer price index also fell to 3.2%.
Economists expect CPI to drop below the Bank of England’s target of 2% next month as the energy price cap is forecast to be cut by 12% this month.
The Kantar data also showed that Ocado Retail, the joint venture between Ocado and Marks & Spencer was the fastest-growing grocer in the past 12 weeks, while Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) held their market share.
Third-placed Asda was the only chain to see till takings fall, down 0.4%, but held its 13.4% market share.