Inflation in grocery prices in the U.K. has seen a consistent decrease for the fifth consecutive month, according to the latest report from market-research firm Kantar. The annual grocery inflation for the four-week period ending on August 6 dropped to 12.7%, down from 14.9% in July. This downward trend marks the second-largest monthly fall since monitoring began in 2008 and signifies a move away from the record high of 17.5% in March.
While prices remain higher compared to the previous year, consumers are starting to witness a gradual decline in the costs of essential goods. For instance, shoppers paid £1.50 ($1.90) for four pints of milk last month, a decrease from £1.69 in March. Similarly, the average cost of a liter of sunflower oil now stands at £2.19, which is 22 pence less than it was in the spring.
Due to unfavorable weather conditions during the period, sales of summer-related staples like ice cream and halloumi declined by 30% and 27% respectively. However, the sales of soups witnessed a notable 16% increase.
Unsurprisingly, consumers continue to prefer own-label goods as a means of saving money, with sales of own-label products experiencing a 9.7% rise compared to a 6.4% increase for branded products.
German discounters Aldi and Lidl have once again demonstrated strong growth in the market. Aldi’s sales increased by 21.2%, resulting in a rise in its market share to 10.2%, while Lidl saw a 19.8% increase in sales and an expansion of its market share to 7.7%.
Although inflation in grocery prices remains a concern, the recent decline offers some relief for consumers in the U.K. As shoppers continue to witness a decrease in the costs of staple goods, they can hope for a more favorable shopping experience in the near future.