Food inflation rises for first time since March 2023 – with £10m spent on final beer in euros | Business News

Food inflation rose for the first time since March 2023, according to closely watched industry data.

Food store prices rose by 1.8% in the four weeks to August 4, research by Kantar Worldpanel found.

17 consecutive months of ease inflation in the sector, including in the previous month, when the rate fell to 1.6%.

Vitamins, supplements, drinks and chocolates were among the products that rose in price the fastest.

The research, based on the purchasing habits of 30,000 UK families, also found an increase in spending on drinks and snacks during the European football tournament and the Olympic Games.

Wine sales rose 35%, while nuts rose 60% and potato chips rose 10% on Friday. opening ceremony in Pariscompared to the previous week.

On the day of euros final between England and Spainfans spent around £10 million on beer in stores alone – the most spent on a Sunday in more than three years, according to the research.

Kantar head of retail and consumer insights Fraser McKevitt said food inflation is now at a historically normal level despite the rise.

He said: “Having reached the lowest rate in almost three years in July, August saw inflation rise slightly again.

“While this is noticeable after 17 consecutive months of falling rates, it actually marks a return to the average levels seen in the five years prior to the start of the cost of living crisis.”

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Warmer weather in recent weeks has also helped boost barbecue favorites like burgers, with sales increasing 32% year-over-year. The amount spent on ice cream also increased by 23%.

However, in the midst of a suspected summer wave of COVIDsales of cough drops soared 28%.

Overall, researchers said there was a mixed picture of price increases when it came to different items on sale.

Kantar said kitchen towels were 7% cheaper than last year, with the cost of baked beans also falling 5%. The prices of bottled colas and dog food have also fallen.

McKevitt added: “With this type of price variation, shoppers will find that the type of product they put in their basket will really determine how much they pay.

“They continue to take advantage of the wide range of promotions offered by grocery stores to help keep the price of purchases low. Spending on promotions increased by 15%, while sales of full-price products did not increase.”

Total take-home food sales increased 3.8% during the four-week period.

The official inflation rate has fallen to the Bank of England’s 2% target – for the first time in almost three years – in May.

This remained stable at the same rate in June, helping to pave the way for the Bank to reduce interest rates in quarter percentage point to 5% earlier this month.

The Office for National Statistics will publish its latest inflation figures, covering the month of July, on Wednesday.

The data is likely to contribute to the Bank’s decision next month on whether to cut interest rates again.

Financial markets have set expectations that a reduction is more likely to occur in November rather than September.