Annual UK grocery inflation 6.8 in 4 weeks to Jan. 21
Grocery sales grew in value by 2.9 yearonyear
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LONDON, Jan 30 Reuters British grocery price inflation declined at a slower rate in January as the proportion of items purchased on promotion dropped compared to December, industry data showed on Tuesday.

Market researcher Kantar said annual grocery price inflation was 6.8 in the four weeks to Jan. 21, down from a restated 6.9 in the previous fourweek period.

The softer decline in January compares with a 2.2 percentage point decrease seen between November and December 2023.

Fraser McKevitt, head of retail and consumer insight at Kantar, said although there39;s been speculation about the impact the disruption to Red Sea shipping might have on the cost of goods, the story in grocery was more about the battle between supermarkets to offer the best value, rather than geopolitics.

Retailers have taken their foot off the promotions gas slightly as weve come into the new year, and thats meant inflation hasnt fallen as quickly, he said. McKevitt noted that items bought on promotion accounted for 27 of grocery spending in January versus 32 in December.

Last week, researcher IGD said UK food and drink prices would continue to rise in 2024.

However, separate data from the British Retail Consortium on Tuesday showed overall prices in UK shops rose at the slowest annual pace since May 2022 this month, adding to signs of…