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

Malaysia on track to become global medtech hub with strong policies - Tengku Zafrul
MN Holdings secures RM162.69mil contract for hyperscale data centre
Malaysia's Oct 2024 IPI up 2.1% - DoSM
Australia's central bank ends 2024 with dovish pivot, Aussie dollar dives
JHM subsidiary bags RM300mil Proton supply contract
Feytech inks JV with Wuhu Ruitai for supply of auto seats
FBM KLCI erases earlier gains as profit-taking continues
Ageson shares to be listed under new name from Dec 13
Public Mutual declares distributions of over RM66mil for four funds
China stocks jump on Politburo policy shift

Others Also Read