UK Grocers - comment

Overall UK grocery sales grow by 6.5% in the four weeks to the 6th of August, driven by grocery price inflation of 12.7%. Morrisons (8.7%) and Asda (7.7%) grew ahead of the market, with Iceland (6.7%) roughly in line with the market. The big four all grew faster than the market, capitalising on the trend for own-label products.  

The latest slowdown in price rises reported by Kantar yesterday is reiterated in this morning’s inflation figures with UK inflation at 6.8% for July, versus 7.9% in the previous month. However, wage inflation figures yesterday, at 7.8%, the highest since records began in 2001, means inflationary pressure is unlikely to ease in the near term, and likely to point to further interest rate rises.