March 7, 2017 / 9:31 AM / 7 months ago

UPDATE 1-UK food inflation doubles in a month - Kantar Worldpanel

 (Adds detail, background)
    LONDON, March 7 (Reuters) - British food inflation has
doubled since last month, with the price of staples including
butter, tea, lamb and fish all rising, industry data showed on
Tuesday, adding to evidence that the impact of last year's
Brexit vote is pushing up shoppers' bills.
    Market researcher Kantar Worldpanel said grocery inflation
was 1.4 percent for the 12 weeks to Feb. 26, up from 0.7 percent
in the 12 weeks to Jan. 29.
    Food prices have been rising in Britain since the 12 weeks
to Jan 1, bringing to an end a more than two-year period when
prices fell.
    Separately on Tuesday two other surveys showed British
consumers cutting back on non-essential spending as the impact
of the depreciation of sterling on import costs following last
year's decision to leave the European Union pushes up the cost
of their day-to-day shopping.
    "Staples such as butter, tea and fish all saw prices rise by
more than 5 percent during the past 12 weeks, as fruit and
vegetables – many of which are imported – also saw an uptick in
price," said Fraser McKevitt, head of retail and consumer
insight at Kantar Worldpanel.
    However, he pointed out that inflation is still far from
universal, with prices falling across a number of categories
including crisps, bacon and eggs.
    "While consumers may be starting to feel a very slight
pinch, increased inflation has led to overall market growth,"
said McKevitt.
    Overall grocery sales in the 12 weeks to Feb. 26 period rose
2.3 percent - the fastest rate since June 2014.
    Sales at market leader Tesco were up 0.6 percent, a
sixth period in a row of increased sales. They were up 0.3
percent at No. 2 supermarket Sainsbury's, its first
growth since March last year.
    And sales were up 2.6 percent at No. 4, Morrisons, its
fastest growth in five years. But No. 3 supermarket Asda
saw its sales fall 0.8 percent - still a significant improvement
and its best performance since November 2014.
    Discounter Lidl [LIDUK.UL} was Britain’s fastest growing
supermarket during the 12 weeks with sales up by 13.0 percent,
while rival Aldi             grew sales by 12.9 percent to reach
a record market share of 6.3 percent.
    
    Market share and sales growth (percent).
        
                  12 wks to     12 wks to     pct change
                  Feb. 26 2017  Feb. 28 2016  in sales
 Tesco            27.9          28.4          0.6
 Sainsbury's      16.5          16.8          0.3
 Asda             15.7          16.2          -0.8
 Morrisons        10.6          10.6          2.6
 Aldi             6.3           5.8           12.9
 Co-Operative     5.9           6.0           1.7
 Waitrose         5.3           5.2           2.9
 Lidl             4.6           4.2           13.0
 Iceland          2.2           2.1           8.8
                                              
 Source: Kantar Worldpanel

 (Reporting by James Davey; editing by Kate Holton)
  

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