Grocery inflation eased for the primary time in 21 months in November, in line with closely-watched trade information displaying that the price of a conventional Christmas dinner will nonetheless be round 9% up on 2021.
Kantar Worldpanel mentioned its predominant grocery inflation figures provided a touch of hope forward because the annual price softened to 14.6% final month from a file 14.7% in October.
However the report, which charts the rise and fall in value of 75,000 grocery store objects, confirmed that on the present price buyers would usually need to spend an additional £60 in December to purchase the identical merchandise as final 12 months.
Food and different necessities have been one of many predominant contributors to the speed of inflation hitting ranges not seen for 41 years.
Russia’s warfare in Ukraine exacerbated a post-COVID lockdown imbalance between provide and demand, with many commodity prices surging.
The value of manufacturing and transporting items has additionally risen sharply due to file power and gas costs.
However, uncooked power and commodity costs have largely eased previously few months – boosting hopes that costs paid by companies and the general public will quickly begin to fall again.
Kantar mentioned the mix of inflation and festive spending meant that December was heading in the right direction to be the largest ever for take-home grocery gross sales.
Fraser McKevitt, head of retail and client perception at Kantar, mentioned: “December appears to be like set to be a record-breaking month with gross sales going above the £12bn mark for the primary time.
“We’re expecting Friday 23 December to be the busiest day for pre-Christmas shopping.”
It mentioned the price of a conventional Christmas dinner for 4 had hit £31 for 2022 – up 9.3%.
Frozen turkeys up 11% in a 12 months
The report charted a 30% rise in parsnip prices, with potatoes up 20%.
Frozen turkey was 11% greater in its comparability.
However, carrot prices have been 7% down with brussels sprouts 3% decrease.
Christmas pudding lovers have been instructed costs have been flat on the earlier 12 months.
Kantar reported a robust gross sales efficiency by supermarkets, significantly discounters, as households seemed to economize by consuming at residence over eating out.
It mentioned grocery gross sales elevated by nearly 6% throughout the 12 weeks to 27 November in comparison with the identical interval final 12 months.
Retailers ‘doing all they will to maintain costs down’
Separate information revealed by the British Retail Consortium (BRC) on Tuesday confirmed continued warning on discretionary spending however backed wider proof that buyers had moved to bag bargains throughout the Black Friday weekend.
BRC chief govt, Helen Dickinson, mentioned: “Sales picked up as Black Friday discounting marked the beginning of the festive shopping season.
“However, gross sales progress remained far under present inflation, suggesting volumes continued to be down on final 12 months.
“As the weather began to turn, customers were quick to purchase winter warmers, such as coats, hot water bottles, and hooded blankets. Black Friday discounts also boosted sales of home furnishings as many households traded big nights out for budget nights in.”
The physique, which additionally represents the grocery store sector, mentioned retailers have been doing all they might to maintain costs down regardless of enormous value pressures.
“The cost of living crisis means many families might dial back their festive plans. Yet, with three weeks to go, there is still plenty of time for the Christmas cheer to bring sales home this Christmas,” Ms Dickinson added.
Source: information.sky.com”