UK grocery inflation hits highest level in 15 months, says Kantar

LONDON (Reuters) -British grocery price inflation jumped to 4.1% for the four weeks to May 18, its highest level since February last year, adding to pressure on consumers already facing higher household bills, data from market researcher Kantar showed on Wednesday.

The figure compared to grocery price inflation of 3.8% in Kantar's report last month. Grocery sales in the period rose 4.4% year-on-year.

"Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3% to 4% point as people notice the impact on their wallets more," said Fraser McKevitt, head of retail and consumer insight at Kantar.

Kantar said prices were rising fastest in chocolate confectionery, suncare and butters and spreads and were falling fastest in dog food, cat food and household paper products.

UK retailers have warned that employer tax rises imposed in the Labour government's first budget, together with another rise in the national minimum wage and a new packaging levy, will be inflationary.

Industry researcher the Institute of Grocery Distribution has forecast that food inflation could hit nearly 5% this year.

(Reporting by James Davey, Editing by Paul Sandle)