UK inflation falls for first time in 21 months

UK inflation falls for first time in 21 months

UK inflation fell in November for the first time in almost two years, providing a small relief for consumers ahead of the key Christmas period, but still remaining close to record highs.  According to Kantar, supermarket inflation in November was 14.6%, down 0.1 percentage points from October’s record.

Fraser McKevitt, head of retail and consumer at Kantar, said that “supermarket inflation still has a long way to fall and, if the current rate is maintained, shoppers will have to spend £60 more in December to buy the same items as last year”.

According to Kantar, grocery sales were up 5.9% year-on-year in the 12 weeks to 27 November, masking a fall in volumes when inflation is taken into account.

In addition, Kantar found that consumers are adopting strategies to mitigate rising costs, with sales of own-brand products up 11.7% year-on-year and sales of the cheapest own-brand products up 46.3%.

On the other hand, German discount chains Aldi and Lidl were again the fastest growing supermarkets, with sales up 24.4% and 22.0% respectively.

Separate surveys released by payment processor Barclaycard and the British Retail Consortium showed that spending rose last month at a pace well behind inflation, underlining the pressure on household budgets.

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