Food inflation falls as Ocado makes a comeback

FOOD inflation has fallen to its lowest level in more than two years as supermarkets slash prices to lure back shoppers after the trauma of the prolonged cost of living crisis.

- Jonathan Prynn

Food and drink prices rose just 4.5% in the four weeks to March 17, a rate of increase not seen since February 2022, according to latest data from analysts Kantar. Food inflation peaked at 17% in March last year.

There is also growing evidence that shoppers are trading up again to more expensive items as they tour the supermarket aisles or spend online.

The fastest-growing grocer was Ocado, which delivers Marks & Spencer food and is generally seen as a more up market player, with sales surging by 9.5% in the 12 weeks to 17 March, though this was also boosted by a voucher promotion.

That was more than triple the uncharacteristically plodding 3.1% growth recorded by German-owned discounter Aldi.