UK grocery inflation slows to 4.0%, the lowest level since April

UK grocery inflation slowed to 4.0% in the four weeks ending January 25, marking its lowest level since April last year, according to figures released Tuesday by market researcher Worldpanel by Numerator.

The reading eased from the 4.3% inflation rate reported in Worldpanel’s previous update, offering modest relief to households grappling with elevated food prices.

The data also serves as an early signal of price pressures ahead of the UK’s official inflation release scheduled for February 18.

Despite the moderation in inflation, Worldpanel noted that UK grocery sales increased 3.8% year on year in value terms over the four-week period. Adjusted for inflation, however, this translates into a decline in volumes, indicating that consumers are buying less even as overall spending rises.

Sources: Investing