Festive spending spree

GROCERY price inflation slowed to 6.7 per cent in December compared with November’s 7.7 per cent, British Retail Consortium figures revealed.

Food inflation dropped to its lowest since April 2022, and although sweets, eggs and frozen potato products rose, dairy items, including butter, milk and cream, were cheaper.

Meanwhile, supermarket chains had their busiest Christmas since 2019, data specialists Kantar announced.

“The inflation rate is coming down at the fastest pace we have ever recorded,” Fraser McKevitt, head of Kantar’s Retail and Consumer division, said.

Promotions were central to retailers’ strategy over the holiday season, McKevitt added. “Nearly one third of all spending in the month up to Christmas Eve was on items with some kind of offer, the highest level since December 2020, and £823 million (€951.9 million) more than 2022.”

A record £13.7 billion (€15.8 billion) passed through supermarket tills last month with an average household outlay of the highest-ever £477 (€551.8).

Biggest share of the Christmas supermarket shop went to Aldi and Lidl, with Lidl’s sales up 13.8 per cent up on the 12 weeks ending on December 24.  Aldi’s sales grew by 9.9 per cent, giving them a combined market share of 17 per cent.