Grocery price inflation stands at 0.2% as big four feel the squeeze

Grocery inflation
Supermarkets: big four feel the squeeze
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Grocery price inflation has fallen for the eleventh consecutive period, according to the latest figures from Kantar Worldpanel.

The report for the 12 weeks to 17 August reveals inflation to stand at just 0.2% - the lowest level since October 2006 when measurement began.

Despite continued challenging market conditions, Asda, Waitrose and Farm Foods have peformed ahead of the market in terms of growth. Both Asda and Waitrose have boosted market share to 17.2% and 4.9% respectively cmpared with the same period last year.

Asda has achieved growth through pushing its Price Lock strategy, which maintains low prices on everyday items, while Waitrose is running competitive offers on home delivery alongside offers for myWaitrose card users.

Challenging market

The remaining of the big four are feeling the squeeze as Tesco and Morrisons shares remain under pressure, while Sainsbury’s has suffered a small drop in share from 16.5% to 16.4% as its sales growth lags behind the market at 0.3%.

Meanwhile, Aldi and Lidl have maintained their record shares of 4.8% and 3.6% respectively, mainly thanks to some 53% of households in the UK shopping at the discounters over the last 12 weeks.

Edward Garner, director at Kantar Worldpanel, said: “Competitive pricing among the big grocers and deflation in the price of staple items such as vegetables, milk and bread has driven inflation down yet again.

"This naturally impacts on the overall growth of the grocery market, which has fallen to a 10-year record low of 0.8%.”

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