The UK has experienced the 'second-sharpest monthly fall' in grocery prices since 2008, market researcher Kantar has said, as the price of staple items starts to edge downwards.
According to Kantar, grocery price inflation in the UK fell by 2.2 percentage points, to 12.7%, in the four weeks to 6 August.
Overall take-home grocery sales rose by 6.5% in the same period, down from 10.4% a month ago, it added.
Prices Returning To Normal
"Prices are still up year on year across every supermarket shelf, but consumers will have been relieved to see the cost of some staple goods starting to edge down compared with earlier in 2023," commented Fraser McKevitt, head of retail and consumer insight at Kantar.
"Shoppers paid £1.50 for four pints of milk last month, down from £1.69 in March, while the average cost of a litre of sunflower oil is now £2.19, 22 pence less than in the spring.”
Private-label products continue to resonate strongly with shoppers, with own-brand sales up 9.7% in the four week period, while branded products saw a 6.4% rise.
Aldi The Fastest-Growing Retailer
In terms of the performance of the UK's biggest grocers, Kantar said that Aldi was the fastest-growing retailer for the fourth month in a row, recording a 21.2% increase in sales in the 12 weeks to 7 August, compared to the same period in 2022.
Aldi now holds 10.2% of the market, with rival discounter Lidl holding 7.7% following a 19.8% rise in sales, year-on-year.
The UK's two largest retailers, Tesco and Sainsbury's, outperformed the wider market this month, fuelled by growth of 9.5% and 9.3% respectively, Kantar added.
Earlier today, retailer Marks & Spencer announced an 11% increase in food sales in the first 19 weeks of its financial year.
