Inflation Falls On Food Prices For 9th Month In A Row

The title of this blog may be a little bit deceiving if you don’t correctly read the small print. So inflation came down with regard to grocery prices in May for the 9th month in a row, with statisticians telling us that the inflation rate of 8.5% is the lowest rate since back in December 2022.

All well and good that the inflation rate is coming down, however 8.5% is still quite a considerable inflation rate. And when you consider that the overall inflation rate across everything is hovering just above 2% it does go to show that food prices are still being ramped at a worrying rate.

Food Poverty Will Remain On The Rise

There will not be many people who will have had an 8.5% increase in their wages or their benefits in the same period, so food poverty will most certainly be on the rise. It is such a concerning trend that we have so many food banks around the UK, and this trend will no doubt continue whilst food prices outstrip the amount of household expenditure of a great many people here.

Kantar business development director Emer Healy echoed these thoughts when she was quoted in an article in the Belfast Telegraph

She ‘cautioned that prices are still high with household budgets under pressure.

‘She said that the annual grocery bill would rise by £476 from £5,600 to £6,076 over the next year if consumers don’t make changes to what they are buying, such as buying own-brand instead of branded goods.’

Own Label Ranges Popular As Shoppers Tightened Purse Strings

The article went on to say:

‘In fact, own label ranges were popular as shoppers tighten the purse strings, growing by 8.1% year-on-year with shoppers spending an additional £139m on own-label goods. In contrast, brands grew 7.8% year on year, though they did hold a bigger market value share, at 54.4%.

‘Kantar said the top grocers in Northern Ireland had remained the same over the year to June 9 2024, with Tesco, Sainsbury’s, Asda and Lidl retaining their stranglehold on the top four.

‘At 10.3%, Sainsbury’s had enjoyed the strongest growth in the value of its sales over the year.

‘Kantar’s research showed shoppers here had treated recent bank holidays as a cause for celebration.

‘Shoppers had spent an additional £5m on beer, lager and wine compared to last year, and an extra £3m on take-home savouries.’

Inflation must be kept under control, with economic growth also a priority, if we are to feel the benefit in our pockets over the next few months.