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Grocery inflation in Feb at highest level ever recorded
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Milk, eggs, margarine show fastest price rises
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Shoppers face 811 pounds rise in annual grocery bill
By James Davey
LONDON, Feb 28 (Reuters) - British grocery inflation hit
17.1% in the four weeks to Feb. 19, another record high, dealing
the latest blow to consumers struggling with a cost-of-living
crisis, industry data showed on Tuesday.
Market researcher Kantar said prices are rising fastest in
markets such as milk, eggs and margarine.
It said UK households now face an additional 811 pounds
($978) on their annual shopping bills if they don't change their
behaviour to cut costs.
"This February marks a full year since monthly grocery
inflation climbed above 4%. This is having a big impact on
people’s lives," Fraser McKevitt, head of retail and consumer
insight at Kantar, said.
He said its research found that rising grocery prices are
the second most important financial issue for the public behind
energy costs. Also a quarter of people say they're struggling
financially, versus one in five this time last year.
After a tough 2022, British consumers are facing a further
squeeze on their finances this year as the government cuts back
support on household energy bills and mortgage rates rise.
However, Official data published this month did show overall
UK consumer price inflation fell to 10.1% in January, the lowest
reading since September, while confidence data from market
research firm GfK last week showed consumers had turned more
upbeat about their personal finances.
Kantar said that sales of own label products were up by
13.2% in February, well ahead of growth in branded products,
which are generally more expensive, of 4.6%.
Kantar said UK grocery sales increased 8.1% over the 12
weeks to Feb. 19, masking a drop in volumes when accounting for
inflation.
German-owned discounters Aldi and Lidl were again the
fastest growing grocers, partly due to new store openings, with
sales up 26.7% and 25.4%, respectively.
Market leader Tesco's sales rose 6.6%, with
Sainsbury's up 6.2% and Asda up 5.9%.
Morrisons was again the laggard, with a sales decline of
0.9%.
UK grocers' market share and sales growth (%)
Market share Market share % change in
12 wks to 12 wks to sales
Feb 19 2023 Feb 20 2022 (yr-on-yr)
Tesco 27.3 27.7 6.6
Sainsbury's 15.2 15.5 6.2
Asda 14.3 14.6 5.9
Aldi 9.4 8.0 26.7
Morrisons 9.0 9.8 -0.9
Lidl 7.1 6.1 25.4
Co-operative 5.5 5.7 3.4
Waitrose 4.7 5.0 0.7
Iceland 2.4 2.3 10.8
Ocado 1.9 1.8 11.3
Source: Kantar
($1 = 0.8295 pounds)
(Reporting by James Davey; editing by Grant McCool)
