Yahoo Finance UK food price inflation falls at record pace
Supermarket inflation slowed down at the fastest rate ever recorded in December, according to data firm Kantar.
Annual grocery price inflation in December eased from 9.1% to 6.7% compared with the previous month. Making December’s figure the sharpest monthly slowdown ever recorded.
Prices for sweets, eggs, frozen potato products are still rising the fastest, but the cost of butter, milk and cream all fell.
The average household spent £28 more on groceries across the month than in December 2022, with families spending an all-time high of £477 on groceries over Christmas.
Read more: UK food inflation slows in December but risk of price increases looms
Britons made 488 million trips to the supermarkets over the four weeks to December 24, some 12 million more than the year before – and sent a record £13.7bn through the tills.
December 22nd was the most popular shopping day, when just over 25 million trips were made and consumers spent £803m in physical stores.
The discount chains Aldi and Lidl hit their highest ever market shares for the festive period while Britain’s two biggest supermarkets, Tesco and Sainsbury’s, were also among Christmas winners.
Supermarkets saw especially strong performances for their own-label lines, with sales of premium ranges like Sainsbury’s Taste the Difference and Tesco Finest surging by 11.9% compared with last year to hit £790m, accounting for 5.7% of all grocery sales.
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Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The rate of inflation is coming down at the fastest pace we have ever recorded, but consumers are still facing pretty hefty pressures on their budgets.
“Retailers were clearly working hard during the festive period to offer best value and win over shoppers, and promotions were central to their strategy.
Tesco, Sainsbury’s, Asda, Morrisons and Waitrose accounted for a combined market share of 70% over the quarter to December 24th.
The traditional Christmas dinner held up well in sales terms. Parsnips, sprouts and potatoes were sold 12%, 9% and 8% respectively more in December 2023 than in 2022.
Sales of chilled gravy were up by 11% and meat items like pigs in blankets, sausages, hams and turkeys were up by 6% collectively.
But mince pies and Christmas puddings dropped in popularity, with sales volumes falling by 4% and 7% respectively.
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