By James Davey

LONDON (Reuters) -British grocery costs elevated 1.7% within the 4 weeks to Oct. 3 year-on-year, market researcher Kantar stated on Tuesday, including to strain on households already dealing with hovering power payments.

With inflationary pressures mounting within the British financial system, one Financial institution of England policymaker on Saturday informed households to prepare for early rate of interest rises.

A survey revealed on Monday by pollsters YouGov and consultancy CEBR in the meantime stated client confidence has fallen to a five-month low.

Kantar stated costs are rising quickest in markets akin to savoury snacks, cat meals and crisps whereas falling in recent bacon and greens.

“In actual world phrases, the typical family needed to spend an additional 5.94 kilos ($8.08) on groceries final month than they did on the similar time final yr,” stated Fraser McKevitt, head of retail and client perception at Kantar.

“The standard family spends 4,726 kilos per yr within the supermarkets, so any future value rises will shortly add up.”

Kantar first reported grocery costs beginning to rise once more in August. They rose 1.3% in its September report.

Nevertheless, Tesco (OTC:), Britain’s largest grocery store group, stated final week that its costs had been nonetheless falling.

Kantar stated UK grocery gross sales fell 1.2% year-on-year within the 12 weeks to Oct. 3, however had been greater than pre-pandemic occasions – up 8.1% in contrast with the identical interval in 2019.

It famous that some customers’ minds are beginning to flip to Christmas, with gross sales of Christmas puddings up 76% year-on-year within the newest 4 weeks, gross sales of toys up 5% and gross sales of reward wrapping merchandise up 10%.

“It is essential to say, nonetheless, that these are nonetheless comparatively small numbers and nervousness round provide points has not translated to panic shopping for – festive or in any other case,” stated McKevitt.

A lot of the nation did, nonetheless, see panic-buying of gas final month as a scarcity of tanker drivers led to disruption of provides.

The lowered availability of gas meant individuals restricted the variety of journeys they made to supermarkets.

The common family made 15.5 retailer visits previously 4 weeks, the bottom month-to-month determine since February.

Conversely the proportion of groceries purchased on-line rose to 12.4% from 12.2% in September.

Tesco, which raised its revenue outlook final week, noticed its market share enhance 0.6 share factors over the 12 weeks, hitting 27.5% – its highest degree since February 2019.

Whereas gross sales at Tesco rose 1.2%, they fell at main rivals – Sainsbury’s, Asda and Morrisons.

Individually on Tuesday information revealed by the British Retail Consortium stated that British customers elevated their spending in September on the slowest tempo since January.

Market share and gross sales progress (%)

12 weeks to 12 weeks to % change in

Oct. 3, 2021 gross sales

Oct 4, 2020

Tesco 27.5 26.9 1.2

Sainsbury’s 14.9 14.9 -1.5

Asda 14.4 14.4 -1.7

Morrisons 9.8 10.1 -4.0

Aldi 8.0 8.0 -0.4

Co-operative 6.4 6.6 -3.1

Lidl 6.2 6.1 0.4

Waitrose 5.1 5.0 0

Iceland 2.3 2.3 -2.3

Ocado (LON:) 1.7 1.8 -5.9

Supply: Kantar

($1 = 0.7350 kilos)