UK food price inflation reaches 3.7%, highest level since March

LONDON

Food price inflation in the UK surged to 3.7% in December, marking its highest level since March, according to new figures from Kantar on Tuesday.

The sharp increase in prices, up from 2.6% in November, contributed to a significant rise in supermarket sales during the festive period, with households spending an average of £460 on take-home groceries.

Sales at the major grocery chains grew by 2.1% over the four weeks leading up to December 29, compared to the same period in the previous year.

This growth, however, was largely driven by rising food prices rather than an increase in the volume of goods sold.

Fraser McKevitt, head of retail and consumer insight at Kantar, described the festive season as “solid” for supermarkets.

“Sales surpassed £13 billion during the four weeks of December for the first time ever, showing people were clearly in the mood to celebrate and spend,” he said.

December’s jump in food price inflation was primarily fueled by rising costs in categories such as confectionery, skincare, and juices.

Despite these increases, consumers appeared willing to spend more on premium goods, with sales of branded products growing by 4.2% and premium own-label lines seeing a remarkable 14.6% increase.

The record-breaking spending on festive groceries highlighted a return to pre-pandemic consumer habits, as families splurged on treats and luxury items. “People were willing to splash out that little bit more than usual,” McKevitt noted.

While December’s sales figures underscore the resilience of the grocery sector, they also reflect the broader challenge of inflation for UK households.

• Food price inflation
• Kantar
• UK