Business

Are we being buttered up for better grocery prices?

The average price of butter has gone down by 16p according to Kantar
The average price of butter has gone down by 16p according to Kantar

GROCERY price inflation has fallen again, figures show.

And one of the big winners is butter, where the price of an average pack is down by 16p.

Prices across grocers were 11 per cent higher than a year ago for the four weeks to October 1, down from the previous month's 12.2 per cent, analysts Kantar said.

It is the seventh consecutive decline in the rate of price rises since the figure peaked at 17.5 per cent in March.

The latest fall was helped by the proportion of groceries bought on offer increasing to 26.5 per cent over the last 12 weeks, the highest level since last June.

Tesco, which Kantar said had been driving the increase in promotions, saw sales rise by 9.2 per cent over the period, with its market share edging up by 0.4 percentage points to 27.4 per cent.

 

Sales of brands on offer hit their highest rate since January, helping sales grow by 7.3 per cent and narrowing the gap with the 10.1 per cent growth of own-label lines.

Discounter Lidl was the fastest growing retailer with sales up by 15.2 per cent over the quarter to take 7.6 per cent of the market.

However, consumers once again put aside cost-of-living concerns to enjoy the joint warmest September on record, sending sales of ice cream, burgers and dips soaring by 27 per cent, 19 per cent and 10 per cent respectively on the same time last year, while sales of sun care products more than doubled across the month.

The summery temperatures also resulted in sales of Christmas puddings and seasonal biscuits falling by 14 per cent and 29 per cent on a year ago.

Tom Steel, strategic insight director at Kantar, said: "Grocery price inflation is still very high, but shoppers will be relieved to see the rate continuing to fall."