GROCERY inflation has fallen to single digits for the first time in 16 months, figures show.
Prices were 9.7 per cent higher than a year ago over the four weeks to October 29, down from the previous month’s 11 per cent, analysts Kantar said.
Getty Images – GettyPrices were 9.7 per cent higher than a year ago over the four weeks to October 29[/caption]
It is the eighth consecutive decline since the 17.5 per cent peak in March, and the first time they have fallen below ten per cent since July last year.
However, Kantar says consumers are only seeing year-on-year price falls in a limited number of categories, including butter, dried pasta and milk.
Spending on promotions has hit 27.2 per cent of total grocery sales as shoppers continue to try to cut their bills — the highest level since last Christmas and a significant increase since last October when the figure was less than a quarter.
Consumers are also continuing to turn to own-label lines, which have grown ahead of their branded counterparts every month since February last year and saw a sales boost of eight per cent over the past four weeks.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Retailers continue to look at ways of softening the blow for shoppers and slowing the rate of price rises.”
Lidl was again the fastest-growing retailer in October.