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U.K. Food Inflation Continues Unabated

01/05/2023

According to research conducted by Kantar involving 30,000 U.K. households, food inflation attained 13.3 percent in December up from 12.4 percent during the previous month.  Monthly grocery sales in December exceeded a record $15 billion attributed to unit price increase since volume was down by one percent.

 

The effect of inflation is reflected in the move to private brands that registered a 13.3 percent increase during the fourth quarter of 2022, more than twice the increase of 4.7 percent for national brands.

 

Collectively the major chains comprising Tesco, Sainsbury’s, Asda and Morrisons represent 65 percent of the grocery market.  Deep discounters including Lidl and Aldi grew at a rapid pace with Aldi market share increasing from 8 percent to 9 percent with a 27 percent increase in sales value based on perception of value associated with a high proportion of private brands.