British supermarket inflation has been delayed for the first time in six months and offers a benchmark for respite to households that struggle with persistent costs of life.
According to Kantar’s latest data, supermarket prices rose by 3.3% in January, compared to 3.7% in December. Toiletrol and cat food costs baptized, while chocolate, butter and cooled juices ran higher.
Analysts suggest that intense competition between retailers has contributed to reducing inflation because promotions have risen to their highest level in four years. More than a quarter of all turnover – 27.2% – In the four weeks to January 26, they were at a discount on items, an increase of 9.4% on the wider market. Kantar’s head of retail and consumer insight, Fraser McKevitt, said: “Supermarkets had fallen off the discounts and consumers responded. Expenditure on promotions rose year after year by £ 274 million. “
In the meantime, the own label ranges-in particular premium lines and a record high of 52.3% of the total sale of supermarkets reached. Consumer’s demand for budget -conscious and higher quality alternatives has contributed to the shift in purchase patterns during the festive period and to the new year.
Official data showed the total British inflation that was relaxed in December to 2.5%, compared to 2.6% in November, which increased the expectations that the Bank of England could lower its basic rate of 4.75%. However, the sale of supermarkets rose by only 2.8%, at the back of inflation – a sign that shoppers can pick up less or cheaper items if they balance their budgets.
Under individual supermarkets, Lidl registered the fastest growth, with a turnover with 7.4%, while ASDA was the only large chain that saw sales fall by 5.2%. Tesco, the largest supermarket in the UK, benefited from rival weakness and increased its market share to 28.5%. Online grocer Ocado retained his title as the fastest growing retailer for the ninth consecutive month, an increase of 11.3%, and co-owner Marks & Spencer also brought a robust performance, with shop sales with 10.5%.