Latest news with #InstituteofGroceryDistribution
Daily Mirror
21-07-2025
- Business
- Daily Mirror
Weekly food shop price warning to UK households as food price inflation to spike
Food prices have overtaken energy as the number one concern for UK households, a survey found as industry experts are forecasting food price inflation will top 5% later in the summer Millions of households have been warned to brace themselves for a further big rise in the cost of the weekly shop. Industry experts the Institute of Grocery Distribution (IGD) is now forecasting that food price inflation will top 5% later in the summer, in a further blow to families who are already feeling the pinch. It added that prices will 'significantly' outstrip the wider cost of living. The IGD's predictions follows official data from the Office for National Statistics last week that food price inflation rose for a third month to hit 4.5% - the highest since February 2024. Among the items that are rising fastest in price are bread and cakes, meat, and milk, cheese and eggs. For example, meat prices rose by 5.7% in June, from 4.8% in May, while cooking oil prices surged from 3.8% to 5.1%, according to the ONS. And if you thought the price of sweet treats had shot up, that is confirmed by data showing inflation in a wide category that includes sugar, jam and chocolate stood at 9% in June, although it has been higher in the past. There are multiple reasons given for why grocery prices are on the way back up, from business rates to the extreme weather. Higher global commodity prices are also a factor. The IGD predicts food price inflation will peak at 5.1% in the late summer, and then remain high for a while. The good news is the IGD then estimates they will decline to between 1.6% and 2.6% in 2026. Rising food prices are causing a big headache for households and now top their concerns, overtaking worries about energy costs. According to IGD's latest data, 83% of shoppers now expect food prices in shops to keep rising. This mounting unease is reflected in the IGD Shopper Confidence Index, which dipped to plus 1 in June, down two points from May. One in four expect their financial situation to worsen in the year ahead, rising sharply to 41% among lower-income households. This nervousness is not what retailers want to hear as they begin to look beyond the summer and the busy period up to Christmas, when many make a big chunk of their money. Michael Freedman, head of economic and consumer insight at IGD, said: 'Businesses must adapt to shifting customer behaviours, as we see more people prioritise value, convenience, and memorable experiences.' Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said: 'The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.' Higher grocery bills will compound an ongoing cost of living crisis for millions of households in the UK, given a jump in water bills and other outlays in "Awful April", while energy costs are still a major headache for many people. While food inflation has picked-up, it is nothing compared to a couple of years ago, when prices were rocketing. According to the ONS, prices peaked at more than 19% in April 2023.
Yahoo
16-07-2025
- Business
- Yahoo
UK June retail sales recover, spurred by summer weather
Retail sales in the UK climbed by 3.1 per cent year‑on‑year in June, according to the latest BRC‑KPMG Retail Sales Monitor. This marks a sharp turnaround from May's 0.2 per cent decline and suggests that soaring temperatures and summer events helped revive consumer spending. Hot weather drives sales of fans and sports gear The BRC chief, Helen Dickinson, noted that 'soaring temperatures increased sales of electric fans while sports and leisure equipment was boosted by both the weather and the start of Wimbledon'. In June—the hottest since records began in 1884—demand for summer essentials was strong. Non‑food stores recorded 2.2 per cent growth, reversing a fall of 1.9 per cent a year earlier. In‑store and online non‑food purchases rose in step, with online at 2.3 per cent and in‑store matching 2.2 per cent. Food inflation boosts supermarket sales Supermarket sales led the way, rising by around 4.1 per cent year‑on‑year . The BRC attributed much of this growth to food price inflation, which reached 3.7 per cent in June—the steepest increase since March 2024. Retailers also linked the rise to hot weather impacting harvests, pushing up the cost of fruit and vegetables. Signs of consumer caution persist Although UK retail sales warmed up in June, broader spending remained cautious. Barclays data showed overall card transactions fell by 0.1 per cent year‑on‑year, with essential outgoings down 2.1 per cent and non‑essentials up just 0.8 per cent. Barclays Chief UK Economist Jack Meaning noted that while non‑essential and leisure spending edged higher—fuelled by summer events—households were still 'maintaining savings buffers' amid economic uncertainty. The Institute of Grocery Distribution also observed that 'sales growth continues to be predominately driven by inflation with volumes under sustained pressure'. What this means for the retail outlook June's rebound shows how summer heat and seasonal events can stimulate UK retail sales, especially for categories like fans, summer clothing, sports gear, and food. Yet underlying pressures—rising living costs, tax hikes, and geopolitical worries—continue to shape consumer behaviour. Analysts warn that while growth may continue into the summer, it could remain modest until inflation eases and confidence improves. As the UK heads into July and August, retailers will watch whether the momentum from strong June performance and Wimbledon carries through, or whether households shift back to cautious spending amid persistent economic headwinds. "UK June retail sales recover, spurred by summer weather" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
28-05-2025
- Business
- Daily Mail
UK supermarket food inflation hits highest annual rate since May 2024
Grocery price inflation jumped to 4.1 per cent for the four weeks to 18 May, its highest level since February last year, data from market researcher Kantar reveals. The figure compared to grocery price inflation of 3.8 per cent in Kantar's report last month. Grocery sales in the period rose 4.4 per cent year-on-year. Kantar said prices were rising fastest in chocolate confectionery, suncare and butters and spreads and were falling fastest in dog food, cat food and household paper products. Retailers have warned that employer tax rises imposed in the Labour's first Budget, together with another rise in the national minimum wage and a new packaging levy, will be inflationary. Industry researcher the Institute of Grocery Distribution has forecast that food inflation could hit nearly 5 per cent this year. Fraser McKevitt, head of retail and consumer insight at Kantar, said: 'Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3 per cent to 4 per cent point as people notice the impact on their wallets more.' He added: 'Own-label lines are ones to watch, with premium own-label in particular being the fastest-growing part of the market since September 2023.' Kantar said customers' spending on deals was up by 5.1 per cent on May last year as prices rise. But, May's hot weather also saw Britons sending sales of chilled burgers up 27 per cent, potato salad up 32 per cent, and coleslaw and prepared salads up by 19 per cent each. Sales of sun cream were up 36 per cent, Kantar said. Latest shopping basket figures suggest consumers are increasingly shaping their diets around health, wellbeing and exercise, with sales of sports nutrition products surging 45 per cent over the past five months compared with the same period last year. Ocado fastest growing supermarket Ocado marked a full year as Britain's fastest-growing grocer, Kantar said. Over the 12 weeks to 18 May, sales at Ocado climbed 14.9 per cent, according to the data. Tesco boosted its sales by 5.9 per cent to increase its share to 28 per cent of the market, while sales growth at Sainsbury's accelerated by 4.7 per cent to give it a 15.1 per cent share. Despite high-profile cybersecurity incidents recently, spending on groceries at Marks & Spencer rose by 12.3 per cent, while Co-op increased sales by 0.6 per cent to take 5.3 per cent of the market.
Daily Mail
28-05-2025
- Business
- Daily Mail
Supermarket price inflation rises at sharpest pace since start of 2024 with butter and chocolate to blame
Grocery price inflation jumped to 4.1 per cent for the four weeks to 18 May, its highest level since February last year, data from market researcher Kantar reveals. The figure compared to grocery price inflation of 3.8 per cent in Kantar's report last month. Grocery sales in the period rose 4.4 per cent year-on-year. Kantar said prices were rising fastest in chocolate confectionery, suncare and butters and spreads and were falling fastest in dog food, cat food and household paper products. Retailers have warned that employer tax rises imposed in the Labour's first Budget, together with another rise in the national minimum wage and a new packaging levy, will be inflationary. Industry researcher the Institute of Grocery Distribution has forecast that food inflation could hit nearly 5 per cent this year. Fraser McKevitt, head of retail and consumer insight at Kantar, said: 'Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3 per cent to 4 per cent point as people notice the impact on their wallets more.' On the up: Grocery price inflation jumped to 4.1% for the four weeks to 18 May He added: 'Own-label lines are ones to watch, with premium own-label in particular being the fastest-growing part of the market since September 2023.' Kantar said customers' spending on deals was up by 5.1 per cent on May last year as prices rise. But, May's hot weather also saw Britons sending sales of chilled burgers up 27 per cent, potato salad up 32 per cent, and coleslaw and prepared salads up by 19 per cent each. Sales of sun cream were up 36 per cent, Kantar said. Latest shopping basket figures suggest consumers are increasingly shaping their diets around health, wellbeing and exercise, with sales of sports nutrition products surging 45 per cent over the past five months compared with the same period last year. Ocado fastest growing supermarket Ocado marked a full year as Britain's fastest-growing grocer, Kantar said. Over the 12 weeks to 18 May, sales at Ocado climbed 14.9 per cent, according to the data. Aldi and Lidl achieved their strongest combined growth since January 2024, at 8.4 per cent, with Lidl reaching a new market share high of 8.1 per cent, with sales up by 10.9 per cent. Aldi's hold of the market reached a record high at 11.1 per cent, with sales rising by 6.7 per cent, Kantar said. Tesco boosted its sales by 5.9 per cent to increase its share to 28 per cent of the market, while sales growth at Sainsbury's accelerated by 4.7 per cent to give it a 15.1 per cent share. Despite high-profile cybersecurity incidents recently, spending on groceries at Marks & Spencer rose by 12.3 per cent, while Co-op increased sales by 0.6 per cent to take 5.3 per cent of the market. Kantar added: 'Sales at Morrisons nudged up by 1.1 per cent and it now holds 8.4 per cent of the market. 'After Asda's best performance since May last year, its share stands at 12.1 per cent. Waitrose maintained a 4.6 per cent share as sales grew by 4 per cent. 'Spending through the tills at Iceland went up by 1.9 per cent, bringing the frozen food specialist's portion of the market to 2.2 per cent.'
Reuters
28-05-2025
- Business
- Reuters
UK grocery inflation hits highest level in 15 months, says Kantar
LONDON, May 28 (Reuters) - British grocery price inflation jumped to 4.1% for the four weeks to May 18, its highest level since February last year, adding to pressure on consumers already facing higher household bills, data from market researcher Kantar showed on Wednesday. The figure compared to grocery price inflation of 3.8% in Kantar's report last month. Grocery sales in the period rose 4.4% year-on-year. "Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3% to 4% point as people notice the impact on their wallets more," said Fraser McKevitt, head of retail and consumer insight at Kantar. Kantar said prices were rising fastest in chocolate confectionery, suncare and butters and spreads and were falling fastest in dog food, cat food and household paper products. UK retailers have warned that employer tax rises imposed in the Labour government's first budget, together with another rise in the national minimum wage and a new packaging levy, will be inflationary. Industry researcher the Institute of Grocery Distribution has forecast that food inflation could hit nearly 5% this year.
