Fruit and vegetables returning to price growth, says Kantar

Price deflation in the retail grocery sector appears to have come to an end, the latest figures from market analyst Kantar Worldpanel suggest.

Image: Anthony Albright (CC BY-SA 2.0)
Image: Anthony Albright (CC BY-SA 2.0)

Its figures published today for the 12 weeks ending 26 February show supermarket sales grew at their fastest rate since June 2014 – up by 2.3% compared to the same time last year.

Kantar head of retail and consumer insight Fraser McKevitt said: "Like-for-like inflation has doubled since last month to stand at 1.4% during the past 12 weeks. However, when placed in their longer-term context, these price increases are still fairly minimal."

Fruit and vegetables were among those seeing price rises, though during the period many of these are imported. But prices continued to fall in some categories including crisps, bacon and eggs.

The combined value of sales at the UK’s four largest supermarkets increased by 0.5% year on year, and these still hold just over 70% of the market, despite the growth of discounters, which continue their rapid growth, McKevitt added.

Kantar also found that the proportion of groceries sold on promotion continued to decline, falling to 34.3% during the past 12 weeks, the lowest level since October 2009. Shoppers spent half a billion pounds less on multi-buy promotions than last year.


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