Food price inflation rises again as Britons rush to supermarkets in Christmas countdown | Personal Finance | Finance
Supermarket food prices have risen again – but it’s not stopped Brits’ rush to supermarkets in the Christmas countdown.
Grocery price inflation marked a 2.3% rise in the year to October, say analysts at Kantar.
This reflects a slight increase on September’s 2% rise, but still within “typical levels”.
Despite rising prices, take-home sales across supermarkets grew by 2.3% in the four weeks leading up to November 3, totalling £11.6billion.
This marked the year’s biggest sales month so far, driven by an increase in shopping trips, which reached 480 million.
Halloween gave sales an extra boost, with 3.2 million households buying at least one pumpkin, while confectionery spending soared to £525million as chocolate and sweets sales rose by 13% and 7% respectively.
Christmas shopping has also begun, with 648,000 shoppers already reportedly purchasing Christmas cakes and 14.4% of households stocking up on mince pies in October.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “October 2024 was the busiest month for the supermarkets since March 2020, when people were preparing for the first national lockdown.”
He added: “Trip numbers have been going up gradually for some time, but this steady march hasn’t reached pre-Covid levels of shopping frequency just yet. The average for each household is slightly over four trips per week.
“What’s interesting this month is the number of households who are already stocking up the cupboards for the big day in December. Some people think Christmas ads hit our screens too soon but it’s clearly important for retailers to set out their stalls early.”
Ocado led with a 9.5% sales increase over the past 12 weeks, while Lidl achieved a 7.4% rise, making it the fastest-growing retailer with a physical presence for the 15th consecutive period.
Tesco outpaced the overall market with a 4.6% sales boost, raising its market share to 27.9%, up 0.6 percentage points from last year. Sainsbury’s also saw a 4.4% increase in spending, taking its market share to 15.5%.
Asda’s sales dropped by 5.5% year-over-year, holding a 12.5% market share, while Morrisons posted a 2.4% sales rise, surpassing the market average for the first time since June 2021.
These figures emerge as numerous high street businesses, including Sainsbury’s and Asda, express concerns about the impact of tax increases outlined in the Budget. Asda has suggested that the rise in employer taxes will “probably be inflationary to some degree”, anticipating an additional £100million in costs.
Last week, Sainsbury’s warned of a potential £140million blow, while Marks and Spencer predicted an extra £60million in costs, which could be further exacerbated by an increase in the National Minimum Wage.
