Supermarket inflation drops at fastest monthly rate ever after families spend record amounts on groceries over Christmas
3 January 2024, 08:46
The rate at which supermarket prices are rising has dropped at the fastest monthly rate on record.
Listen to this article
Loading audio...
Prices in supermarkets are on average 6.7% higher than a year ago, whereas in November they were 9.1% higher, according to analysts Kantar.
But supermarkets also had their busiest Christmas since 2019. Brits spend a record £13.7 billion on 488 million trips to big food shops over the four weeks to December 24.
The average household spent £28 more on groceries in December than in the same period a year earlier. Total take-home sales were up 7% in value and the number of items bought went up 2%.
The most popular shopping day was December 22, when just over 25 million trips were made and consumers spent £803 million in physical stores - 85% more than the average Friday in 2023.
The online share of the market was flat at 11.6%. About 20% of households received a delivery as part of their preparations for Christmas Day.
The traditional Christmas dinner held up well in sales terms. Parsnips, sprouts and potatoes were sold 12%, 9% and 8% respectively more in December 2023 than in 2022.
Sales of chilled gravy were up by 11% and meat items like pigs in blankets, sausages, hams and turkeys were up by 6% collectively.
But mince pies and Christmas puddings dropped in popularity, with sales volumes falling by 4% and 7% respectively - although fresh cream was up by 5% across the month.
Mel Stride on inflation
Five supermarket brands - Tesco, Sainsbury's, Asda, Morrisons and Waitrose - accounted for a combined market share of 70% over the three months to December 24.
Supermarkets saw especially strong performances for their own-label lines, with sales of premium ranges like Sainsbury's Taste the Difference and Tesco Finest surging by 11.9% compared with last year to hit £790 million, accounting for 5.7% of all grocery sales.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: "The rate of inflation is coming down at the fastest pace we have ever recorded, but consumers are still facing pretty hefty pressures on their budgets.
"Retailers were clearly working hard during the festive period to offer best value and win over shoppers, and promotions were central to their strategy.
"Nearly one third of all spend in the four weeks to Christmas Eve was made on items with some kind of offer, the highest level since December 2020 and £823 million more than last year."
