British Grocery Price Inflation Rises

LONDON (Reuters) – British shoppers faced increased pressure on their budgets last month after grocery price inflation edged higher, according to industry data released on Tuesday.

Market researcher Kantar reported that annual grocery price inflation was 2.6% in the four weeks leading up to December 1, increasing from 2.3% in the previous four-week period.

Prices have risen the fastest for products such as:
– Toothbrushes
– Chilled smoothies & juices
– Fragrances

Conversely, prices have fallen the most for:
– Household paper products
– Dog food
– Ambient savoury meals

Among individual supermarkets, Tesco (OTC:TSCDY), Britain's largest, experienced a 5.2% sales increase over the 12 weeks to December 1, capturing a market share of 28.1%, its highest since December 2017.

UK supermarkets have cautioned that tax increases in the new Labour government's first budget in October, along with a rise in the national minimum wage, will contribute to inflationary pressures.

Official data from last month indicated that overall UK inflation rose to 2.3% in October. The data for November is set to be released on December 18.