Food price inflation in the UK fell for the seventh month in a row, but remained high, with consumers facing a higher cost of living, Zhitong Financial APP learned. Annual price growth slowed to 11% in the four weeks to Oct. 1, down from 12.2% the previous month, according to market research firm Kantar. This is the lowest level in more than a year, but the figure will still put pressure on consumer spending.
Tom Steel, director of strategy at Kantar, said: "Food price inflation is still high, but consumers will breathe a sigh of relief to see it continue to fall. The prices of some basic foods have now begun to fall since last year, which has helped to reduce the broader rate of inflation. "
Supermarkets say they cut prices as much as possible, with dairy products and spaghetti falling the most. Inflation on supermarket shelves in the UK has fallen steadily since March, when it reached 17 per cent.
At present, consumers still prefer discount grocery stores to save money, of which Lidl's sales have grown by more than 15% in the past year, making it the fastest-growing grocery store of all supermarkets. Aldi's sales grew by 14.9%. By contrast, Morrisons's sales grew by just over 2 per cent, while Asda grew by less than 3 per cent.
TSCDY.US, the UK's largest grocer, raised its profit forecast last week, attracting consumers by controlling prices and its own costs. Ken Murphy, Tesco's chief executive, said at the time that the gap between Tesco's price and discounters had never been so small. Aldi's spokesmen denied the claim, saying the price gap between it and its competitors was "still wide".
Britain's antitrust regulator dismissed allegations in July that the country's largest supermarket was profiting from high food costs, but said some retailers were not doing enough to allow customers to compare prices.
Consumers have been enjoying the warm autumn weather in the UK, with sales of snacks such as ice cream, hamburgers and mashed beans up 27 per cent, 19 per cent and 10 per cent, respectively, according to Kantar.