Finance
UK grocery inflation slows in January, says Kantar
Published by Global Banking and Finance Review
Posted on February 4, 2025
2 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 4, 2025
2 min readLast updated: January 26, 2026
UK grocery inflation fell to 3.3% in January due to increased supermarket promotions, providing some budget relief for consumers.
LONDON (Reuters) -British consumers received some relief to pressure on their budgets in January as a step-up in supermarket promotions meant grocery inflation edged lower following four straight months of rises, industry data showed on Tuesday.
Market researcher Kantar said annual grocery price inflation was 3.3% in the four weeks to Jan. 26, down from 3.7% in last month's report. Sales rose 4.3% over the period year-on-year.
It said the fall in inflation reflected an increased level of January promotions from supermarkets. They rose year-on-year by 274 million pounds ($340 million), accounting for 27.2% of sales – the highest level in January since 2021.
Kantar said prices are rising fastest in products such as chocolate confectionery, chilled smoothies and juices and butters and spreads, and are falling fastest in cooking sauces, household paper products and cat food.
Despite the January fall in food inflation, supermarkets have warned that tax rises in the new Labour government's first budget in October, together with another rise in the national minimum wage, will be inflationary.
Prominent grocery industry researcher, the Institute of Grocery Distribution has forecast that food inflation could hit nearly 4.9% in 2025.
($1 = 0.8057 pounds)
(Reporting by James Davey, Editing by Paul Sandle)
The article discusses the slowdown in UK grocery inflation in January due to increased supermarket promotions.
Promotions increased significantly, leading to a reduction in grocery inflation from 3.7% to 3.3%.
Supermarkets warn of potential inflation due to upcoming tax rises and minimum wage increases.
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