UK grocery price inflation hits highest level since March 2024

British grocery price inflation rose to 4.7 per cent for the four weeks to June 15, its highest level since March last year, dealing another blow for low-income households, data from market researcher Kantar showed on Tuesday.

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The figure, which compared to 4.1 per cent in last month's report, was driven by price rises in products such as chocolate, butter and meat, Kantar said.

Market leader Tesco said earlier this month that new employer taxes and regulatory costs were adding to inflationary pressure at a time when commodity prices were rising.

Industry researcher the Institute of Grocery Distribution has forecast that food inflation could hit nearly 5 per cent this year.

Data from Asda and the Centre for Economics and Business Research, published on Monday, showed that while average real disposable income is rising in the UK, the lowest-earning 40 per cent now have less spending power than they did in 2021.

"Consumer concerns over price are continuing, and this is reflected in the figures. Sales of own label ranges grew at 4.2 per cent this month, ahead of branded lines, as shoppers looked to balance their budgets," Fraser McKevitt, head of retail and consumer insight at Kantar, said.