Shop price inflation hits fresh high

Grocery inflation has soared to a fresh record of nearly 15%, industry data showed on Tuesday, adding hundreds of pounds to annual shopping bills.

According to Kantar, grocery price inflation in the four weeks to 30 October reached 14.7%, the highest rate since the retail consultancy started tracking prices in 2008.

In the 12 weeks to 30 October, inflation was 13.4%, with prices rising fastest in markets such as margarine, milk and dog food.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: "Consumers face a £682 jump in their annual grocery bill if they continue to buy the same items, and just over a quarter of all households - 27% - now say they’re struggling financially, double the proportion we recorded last November."

Overall, take home grocery sales rose by 5.2% in the 12 weeks to 30 October, with own label sales ahead 10.3% as hard-pressed shoppers sought cheaper alternatives.

McKevitt said: "Food and drink spending is generally non-discretionary, so it’s not easy for shoppers to cut back the amount they buy. Many are looking to reduce costs in other ways, and the big shift to own label is still accelerating.

"While some of the rise will be down to price inflation, we can clearly see the trend in sales of the very cheapest value own label ranges, which are up by a whopping 42%."

Among individual grocers, discounter Aldi was the fastest growing retailer during the period, with sales surging 22.7% year-on-year, giving it a market share of 9.2%. Sales at rival Lidl rose 21.5%, taking its market share to a new high of 7.2%.

Tesco, the UK’s biggest grocer with a market share of 27%, saw sales rise 3.1%, while J Sainsbury’s reported a 3.3% uptick and Asda a 5.3% increase. Sales fell 4.6% at Wm Morrisons, and by 1.9% at Waitrose, part of the John Lewis Partnership.

Online grocer Ocado recorded flat growth with a market share of 1.6%.