Grocery prices in the U.K. declined month over month in October, slightly helping consumers affected by inflation that rose throughout the summer, but seafood inflation jumped during the month.
Seafood prices increased 3.7 percent in October compared to the same month last year and rose 0.7 percent month over month compared to September, according to U.K. trade organization Food and Drink Federation. Other protein options also saw price increases in October, with beef prices shooting up 32.3 percent compared to last year and lamb prices inclining 10.4 percent.
However, overall food inflation declined to 3.7 percent in October, compared to 4.2 percent in September, according to the British Retail Consortium (BRC).
Despite the decline, inflation is still causing a problem for shoppers.
“Inflation is higher than a year ago, and with pressure on household budgets and weak sentiment, retail spend continues to be subdued. However, food retailers are in a battle for market share, and many are offering targeted price cuts,” NIQ Head of Retailer and Business Insight Mike Watkins said in a BRC release.
As a result of those targeted price cuts, spending on grocery deals jumped 9.4 percent in October, according to Worldpanel. This led to take-home sales at grocery stores growing by 3.2 percent in October year over year, according to Worldpanel, and the research firm is predicting a new sales record for retailer premium lines in December at more than GBP 1 billion (USD 1.3 billion, EUR 1.1 billion).
“Christmas ads are hitting our screens, and the race to the big day is on in the supermarket sector. Retailers are very [aware of] the financial struggles that some households are facing. “They’re eager to show how they’re offering shoppers value for money, putting the emphasis on price cuts rather than multibuy offers,” Worldpanel Head of Retail and Consumer Insight Fraser McKevitt said in a release. “It’s important to remember that shoppers often look for great value and quality, not just the cheapest product. At Christmas, especially, people want to treat themselves, and throughout the cost of living crisis, we’ve seen them turning to retailers’ premium own-label lines to do that in a way that’s more affordable,” McKevitt said.
With the U.K.’s Autumn Budget scheduled for release 26 November, BRC Chief Executive Helene Dickinson said the government has an opportunity to help customers even further.
“The [government] has an opportunity to relieve some of the pressures that are keeping the cost of essentials high. Labour’s promised business rates reform must deliver a meaningful cut to retailers’ rates bills and ensure that no store pays more,” Dickinson said, adding that rising employer National Insurance Contributions and a new packaging tax have directly contributed to increasing inflation.
Therefore, she said adding further taxes on retail businesses would inevitably keep inflation higher for longer.
