Grocery inflation eases as easter treats lift sales

Price rises at UK supermarkets continue to slow, but early Easter boosts lifted the overall grocery market.

Grocery inflation eases as easter treats lift sales
Grocery Inflation

Grocery price inflation in the UK dipped to 4.5% in the four weeks to March 17th, the lowest level since February 2022, according to the latest data from Kantar. This marks a further easing from the 5.3% rate recorded in February as supply chain costs ease.

The market research firm revealed that total grocery sales rose 4.2% annually to £33.02 billion over the same period, partly boosted by shoppers stocking up on Easter treats earlier than usual. Premium own-label lines were a major winner, growing 16.1% as cost-conscious consumers traded down.

Among the major supermarkets, Tesco saw sales climb 5.8% to £9.03 billion, nudging its market share up 0.4 percentage points to 27.3%. Sainsbury's performed even better with a 6.7% sales rise to £5.01 billion and a 0.4 percentage point market share gain to 15.2%.

Discounters remained a focal point, with Aldi's sales up 3.1% for a 9.8% market share. Lidl grew faster at 8.8%, capturing 7.8% driven by strong baked goods and produce sales. The online grocer Ocado was the fastest-growing retailer, improving sales 9.5% to £633 million on the back of a voucher campaign.

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