UK Edition
Respite for shoppers as food inflation slows down
British households hit by recent food price hikes have been given respite by a slowdown in grocery inflation, new research shows.
Fresh figures from Kantar Worldpanel show that food price inflation has levelled out at 3.2pc, the same rate of increase as this time last month.
Food prices have been soaring since the vote to leave the European Union thanks to rising import costs as a result of the weaker pound.
The increase in prices has boosted supermarket sales, which were particularly buoyant last month as the UK enjoyed its hottest June day in 40 years.
In the 12 weeks ended July 16, grocery market growth exceeded 3pc for the fourth consecutive period, while supermarket sales increased by 3.9pc compared to the same period last year.
There was also continued success for supermarkets’ own label brands, which now account for a record 51pc of spending.
The hot weather last month helped boost ice cream sales by 34pc, while shoppers also spent an extra £158m on alcohol.
Among the major supermarkets, Lidl was the UK’s fastest growing with sales growth of 19.4pc marking its best performance since October 2014. It now holds a record market share of 5.1pc.
Tesco, Sainsbury’s and Morrisons all saw sales increases of more than 2pc, while Asda sales jumped by 1pc.