London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Grocery inflation eases for second consecutive month

Grocery inflation eases for second consecutive month

Industry data shows loyalty schemes and falling prices for essentials such as milk are slowly eating away at shoppers' bills.
Falling milk prices have helped drive grocery inflation lower for a second consecutive month, according to industry data.

Kantar Worldpanel, which tracks supermarket sales and prices, measured the annual rate of grocery inflation at 17.2% over the four weeks to 14 May.

That was down from 17.3% in the previous four-week period but still at the third-highest level since the 2008 financial crisis.

The cost of food and other essentials has proved a drag on the cost of living crisis this year as energy-led price increases continue to filter through the supply chain.

The cost of four pints of milk, which had risen due to higher feed, production and transportation costs, fell by 8p over the four weeks.

But Kantar added that prices were still much higher than they were 12 months ago, at £1.60 currently compared to £1.30.

The report said the dairy aisle had become a battle-ground in the supermarket price war, with the established chains Tesco, Sainsbury's, Asda and Morrisons continuing to face tough competition from discounters.

Fraser McKevitt, Kantar's head of retail and consumer insight, said: "Of course, shoppers are savvy and they're skirting higher prices by choosing more own-label goods.

"These lines grew by 15.2% this month, almost double that of branded products which rose by 8.3%.

"However, the gap between own lines and brands is narrowing in most stores, helped in some cases by loyalty discounts."

Coronation boost

The report highlighted a £218m lift to business at the tills during the week of the King's coronation, with wine and ingredients for the Coronation Quiche helping lead the way.

The latest data was released ahead of the official inflation figures on Wednesday, which are tipped to show the main consumer prices index (CPI) measure slipping sharply.

Economists polled by the Reuters news agency see the annual rate easing to 8.2% in April from the current 10.1%.

Electricity and natural gas prices leapt by 40.5% and 66.8% respectively in April 2022, data from Pantheon Macroeconomics showed, but held steady last month.

It is hoped that the gradual easing in wholesale energy costs this year will aid a slowing in the pace of food price increases as they feed into manufacturing and transport costs.

Regulatory pressure to ensure consumers are being charged fair prices was revealed last week when the Competition and Markets Authority announced fuel and grocery price investigations.

The watchdog will be looking for evidence of so-called "greedflation" - rising prices due to excessive charges.

Food and non-alcoholic drink inflation was measured at 19.1% by the Office for National Statistics (ONS) in March.

That was the highest level since August 1977.

The Kantar data will go some way to giving hope that the pace of price hikes for groceries has more or less peaked.

However, it is unlikely to give any encouragement that any meaningful easing of prices for squeezed households is just around the corner.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×