Kantar: UK inflation hits highest point in over a decade

UK inflation is nudging 5.9% this month – its highest point in over a decade – the latest data from Kantar has shown, with shoppers looking to save pennies as their budgets get squeezed.  

Fraser McKevitt, head of retail and consumer insight at Kantar, warned that the average household will be exposed to a potential price increase of £271 per year on the back of inflationary pressure – with much of that hitting non-discretionary, everyday essentials which are difficult to cut back on.

“We’re seeing a clear flight to value as shoppers watch their pennies,” he warned.

He noted the level of products bought on promotion was now standing at 27.3%, down 2.7 percentage points as retailers increasingly rely on everyday low price strategies.

“The major retailers are listening to shoppers’ concerns, with Asda launching its Just Essentials line, Morrisons announcing that it is cutting the price of many everyday goods, and Tesco locking in savings through its Clubcard strategy,” he noted.

Easter provided a bright spot, however, with premium own label products performing better than any other lines, up 6.5% – but overall sales declined in the latest four weeks (down 4.1%) in part due to the further easing of restrictions and people returning to the office and the on-trade.

People aren’t buying as much when in they are in store, McKevitt noted – and the average basket size has dropped by 4.5% to £22.39. Online sales also continued to drop – online share dipped by 1.5 percentage points in April and is now 15% lower than in 2021.