UK grocery inflation edges higher to 4.3%, says Worldpanel

LONDON, March 3 (Reuters) – UK grocery inflation edged up to ​4.3% in the four weeks to February 22, dealing a ‌new blow to consumers after it eased in January, data from market researcher Worldpanel by Numerator showed on Tuesday.

Grocery inflation had hit a nine-month low of 4.0% in ​its previous report.

The figure from Worldpanel provides an early indication of pricing ​pressures ahead of official UK inflation data on March 25.

It said prices are rising fastest ​in markets such as fresh unprocessed meat, skin care and chocolate confectionery ​and falling fastest in chilled butter and spreads, household paper and sugar confectionery.

The Bank of England is watching food prices closely as it believes they play a key role ​in shaping the public’s overall inflation expectations. Britain’s headline inflation rate eased to ​3% in January.

Separate data on Tuesday from the British Retail Consortium showed annual shop price ‌inflation ⁠slowed to 1.1% in February, with food inflation easing to 3.5%.

Worldpanel said that over the 12 weeks to February 22 industry leader Tesco’s sales rose 4.5% year-on-year and its market share grew 20 basis points to 28.7%. Number ​two Sainsbury’s sales increased ​5.2%, taking its ⁠share to 16.1%.

Discounter Lidl GB remained the fastest growing bricks-and-mortar retailer, with sales up 10.0%, while online supermarket ​Ocado remained the fastest growing overall, with sales up ​15.1%.

Number three ⁠player Asda continued to struggle – its sales fell 2.6%, giving it a market share of 11.5%, down 80 basis points on the year.

UK supermarkets’ market share ⁠and ​sales growth (%)

Source: Worldpanel by Numerator