Shoppers turn to Aldi and Lidl as grocery price inflation exceeds 5 per cent
Grocery price inflation has reached 5.2 per cent over the latest four weeks, as households brace for a cost of living crunch this spring.
The rate of price hikes has hit the highest level since April 2012, according to Kantar’s index published on Tuesday morning.
Shoppers are turning to discount retailers and own brand products in a bid to soften the blow of roaring inflation.
Budget retailers Aldi and Lidl both grew sales 3.6 per cent in the past four weeks, with Aldi hitting a record share of 8.6 per cent and Lidl matching its own record at 6.4 per cent.
Own label products now account for 50.6 per cent of all spending, an increase on 49.9 per cent last year.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “More and more we’re going to see consumers and retailers take action to manage the growing cost of grocery baskets. Consumers are increasingly turning to own label products, which are usually cheaper than branded alternatives.”
Grocers have moved away from selling products at ’round pound’ prices, with the percentage of packs sold at either £1, £2 or £3 dropping significantly from 18.2 per cent last year to 15.9 per cent this March.