Grocery inflation hits new record high

Own-label is a major factor

shopping basket
A challening first quarter lies ahead for retailers as sales volumes see a big fall.

INFLATIONARY relief late last year was only short lived as grocery price inflation has reached a new record high, says Kantar.

According to the latest Kantar market research, grocery price inflation sat at 16.7% during the four weeks to 22 January.

This record inflation continued to see consumers flock to cheaper options across the board.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Competition in the Briitsh grocery sector is as intense as it’s ever been as retailers strive to retain shoppers.

“The grocers have been doing this by boosting their own-label ranges especially, with sales of these lines growing consistently over the past nine months.

“January was no exception, as own-label lines grew by 9.3%, well ahead of branded alternatives which were up just by 1%.”

And while NielsenIQ data found that total till grocery sales also reached a new record of 13.8% in January, the decrease in volume illustrates the impact of inflation.

Nielsen said, in the four weeks to 28 January, grocery volume sales dropped by 6.9%, the lowest volume growth recorded in over nine months.

Mike Watkins, UK head of retailer and business insight at Nielsen, said: “We expect a challenging first quarter for the grocery industry, with inflation very much top of mind for shoppers.”