UK grocery inflation edges higher in August


Buying spree: Shoppers walking along Oxford Street in London. Annual grocery price inflation was 1.8% in the four weeks to Aug 4. — Reuters

LONDON: UK grocery inflation edged higher this month for the first time since March 2023, according to industry data.

Market researcher Kantar said annual grocery price inflation was 1.8% in the four weeks to Aug 4, versus 1.6% in the previous four week period.

“Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly,” Fraser McKevitt, head of retail and consumer insight at Kantar, said.

“While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.”

The British Retail Consortium warned last month that renewed inflationary pressures could be on the way as the effect of last year’s fall in commodity prices fades and climate change damages harvests following unusually wet weather in England and extreme heat elsewhere.

Wage inflation is also putting upward pressure on prices.

Kantar said prices are rising fastest in markets such as vitamin and mineral supplements, fruit juices and drinks and chocolate confectionery and are falling fastest in toilet tissues, bottled cola drinks and dog food.

Official data published last month showed overall UK inflation held at 2% in June, lower than in the United States and the eurozone. Data for July is expected to show an increase.

Kantar’s data, the most up-to-date snapshot of UK consumer behaviour published since the July 4 national election, showed take-home grocery sales rose 3.8% in value terms over the four-week period year-on-year.

It said sales of wine, beer and snacks were boosted by the closing stages of the Euro 2024 soccer championship and the start of the Paris Olympics. — Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

FGV Holdings terminates agreement with Qatar's Baladna, Touch Group
EAP countries must pursue liberalisation, regulation for sustainable services development - World Bank Group
Autocount teams up with YYC to drive SME digital transformation, e-invoicing adoption
PGF Capital indirect unit acquires land in Kulim Hi-Tech for RM12.7mil
Sapura Energy unit completes divestment of 50% stake in SapuraOMV
Ringgit closes slightly lower amid Mideast uncertainty, ahead of US CPI data
Sumisaujana gets green light for ACE Market listing
Sunview unit bags two PV solar contracts worth RM196.1mil
Bursa Malaysia ends lower in muted trading ahead of US inflation print
SNS Network registers fourfold increase in net profit to RM10.2mil in 3Q

Others Also Read