Food price inflation jumps to highest level in over a year

Food price inflation jumps to highest level in over a year Sales across UK supermarkets also increased significantly - rising by 6.5% overall in the four weeks up to April 20 New inflation figures have been released by Kantar (Image: PA ) Grocery price inflation has surged to its highest level for over a year, new figures show. The increase was largely driven by chocolate prices soaring by a fifth - but this failed to dent sales of Easter eggs. Latest data from retail analysts Kantar showed that grocery inflation - the measure that reflects how much the cost of items increases for the consumer - rose to 3.8% in the four weeks to April 20, up from 3.5% in the previous month and the highest since the four weeks to March 17 last year. The increase comes after inflation levels eased in March for many products - including for computers and sugar - but accelerated for numerous other items, such as cocoa and margarine. Chocolate confectionery prices jumped by 17.4% in the four weeks to April 20, and coffee, butters and spreads also saw big increases. But these high prices failed to prevent shoppers from splashing out over the Easter period, with spending on Easter eggs up by 11% year-on-year over the four weeks to Easter. Some of this rise was driven by the higher prices but the number sold through supermarket tills also rose, up 0.4% on last year, signalling strong demand. Article continues below Supermarket customers looked to discounts and loyalty card deals to help cut the costs of their food shop, with spending on promotions reaching 29.7% – its highest level so far this year, Kantar said. Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The grocers have been sharpening their pricing strategies to stay competitive in the fight for footfall. “They’ve invested in price cuts which were the main driver of promotional growth. Often linked to loyalty cards, spending on these deals grew by £347 million. “At Tesco and Sainsbury’s, nearly 20% of items sold are on a price match, and they end up in almost two thirds of baskets.” He said there was also evidence of shoppers trading up for their Easter shop, with premium own label sales up 23.2% in the past four weeks. “Ultimately, retailers need to be seen to be offering great value but it’s a fine tightrope to walk, particularly as they manage their own business costs,” he added. The latest supermarket share price data showed Ocado was the fastest-growing retailer once again in the 12 weeks to April 20 – a title it has held continuously for nearly a year now. The online grocer’s sales grew by 11.8% year-on-year in the quarter, while it increased its market share to 1.9% from 1.8% a year ago. German discounters Lidl and Aldi continued to make solid gains, with sales growth of 10.1% and 5.9% and market shares of 8% and 11% respectively. Article continues below Of the bigger chains, Tesco had the highest sales growth of 6%, nudging up its share to 27.8%, while sales at Sainsbury’s grew by 4.4%, taking its share to 15.3%. Under-pressure rival Asda remained the worst performer, with sales down 3.8% and its share falling to 12.3% from 13.3% a year earlier.