Grocery price inflation eased to its lowest level in more than two years last month as supermarkets increased discounts to attract cost-conscious shoppers in the run-up to the chancellor’s budget and the Christmas trading season.
According to new data from Worldpanel by Numerator, grocery inflation slowed to 4.7 per cent in the four weeks to 2 November, down from 5.2 per cent the previous month. The decline came as supermarkets rolled out a wave of price cuts and promotions to offset consumer nervousness ahead of Rachel Reeves’s autumn budget, which is due to be delivered just four weeks before Christmas.
Spending on promotional offers surged 9.4 per cent during the period, accounting for almost a third of all grocery sales, while spending on full-priced goods rose only 1.8 per cent.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said supermarkets were “very alive to the financial struggles that some households are facing, not least ahead of this year’s budget,” and were focusing on price cuts rather than multibuy deals to deliver clearer value.
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