- Grocery prices are 6.7% higher than a year ago, the lowest level since April 2022
Supermarket inflation has seen its fastest monthly drop on record as the average household spent an all-time high of £477 on groceries in December, data show.
Grocery prices are now 6.7 per cent higher than a year ago, the lowest level since April 2022, and a plunge from November’s inflation of 9.1 per cent, analysts at Kantar said.
It came as supermarkets experienced their busiest Christmas since 2019, with Britons making 488million trips to the supermarkets in the four weeks to December 24, spending a record £13.7billion through the tills.
Prices: Grocery prices are now 6.7% higher than a year ago, the lowest level since April 2022
The number of trips to supermarkets for the period was 12million higher than the previous year.
The average household spent £28 more on groceries last month when compared to December 2022, with total take-home sales up 7 per cent in value and the number of items bought up 2 per cent.
22 December was the most popular shopping day, with over 25million trips were made and consumers spent £803million in physical stores, 85 per cent more than the average Friday in 2023.
Online’s share of the market held steady at 11.6 per cent, as nearly one in five households received a delivery in preparation for Christmas Day.
Tesco, Sainsbury’s, Asda, Morrisons and Waitrose accounted for a combined market share of 70 per cent over the quarter to 24 December.
Down: Sales of mince pies and Christmas pudding saw sales volumes fall compared to the previous year
Supermarkets saw strong performances across their own-label lines, with sales of premium ranges like Sainsbury’s Taste the Difference and Tesco Finest rising by 11.9 per cent compared with last year to hit £790million, accounting for 5.7 per cent of all grocery sales.
Consumer appetite for the traditional Christmas dinner was strong, with sales of parsnips, sprouts and potatoes up 12 per cent, 9 per cent and 8 per cent respectively.
Sales of chilled gravy jumped 11 per cent, while sales of meat including pigs in blankets, sausages, hams and turkeys up by 6 per cent collectively.
However, mince pies and Christmas puddings bucked the trend, with sales volumes falling by 4 per cent and 7 per cent respectively, although fresh cream was up by 5 per cent across the month.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: ‘The rate of inflation is coming down at the fastest pace we have ever recorded, but consumers are still facing pretty hefty pressures on their budgets.
‘Retailers were clearly working hard during the festive period to offer best value and win over shoppers, and promotions were central to their strategy.
‘Nearly one third of all spend in the four weeks to Christmas Eve was made on items with some kind of offer, the highest level since December 2020 and £823’million more than last year.’