Friday, November 15, 2024

UK Grocery Inflation Higher Again As Countdown To Christmas Begins

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LONDON (Reuters) - British shoppers faced renewed pressure on their budgets in October after grocery price inflation edged higher for the second month in a row, industry data showed on Tuesday.

Market researcher Kantar said annual grocery price inflation was 2.3% in the four weeks to Nov. 3, having been 2.0% in the previous four-week period.

The data showed prices are rising fastest in products such as chilled soft drinks and chocolate confectionery, and falling fastest in items such as toothbrushes, household paper products and sparkling wine.

UK supermarkets have warned that tax rises in the new Labour government's first budget last month, together with another rise in the national minimum wage, will be inflationary.

Kantar said grocery sales rose 2.3% over the four week period year-on-year to 11.6 billion pounds ($14.9 billion) - the biggest sales month of the year so far.

The researcher said there were signs that some consumers were starting their Christmas shopping early. It noted that 648,000 shoppers have already bought a Christmas cake, while 14.4% of households purchased mince pies in October.

Industry leader Tesco saw sales growth of 4.6% and its market share rose 60 basis points to hit 27.9%.

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