Food inflation starting to fall, says Sainsbury’s

LAURA MCGUIRE

SAINSBURY’s yesterday said “food inflation is starting to fall” as it recorded an 11 per cent hike in grocery sales in the first leg of the year.

The ‘Big Four’ grocer recorded an inflation-led 9.8 per cent like-for like increase in total retail sales excluding fuel in the first quarter of the year, up from four per cent in the same period last year.

“Food inflation is starting to fall and we are fully committed to passing on savings to our customers,” Simon Roberts, chief executive of Sainsbury’s, said yesterday.

Last month, Britain’s biggest retailer Tesco also said there were “encouraging signs” food inflation was easing, as it reported almost £15bn in quarterly revenue.

Food inflation fell slightly in May, but remained at 18.4 per cent, according to the Office for National Statistics.

During the quarter, Roberts announced a series of price cuts amid claims from the government that supermarkets were profiting from the cost of living crisis.

The supermarket said it had injected £60m into cost cutting initiatives for customers since March.

Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, said the comments on food inflation would be good news for consumers, but said the supermarket still had a long way to go.

“It is far too early for Sainsbury’s to declare victory. The competitive environment continues to heat up with Aldi, Lidl and Amazon all looking to expand in UK grocery. Cost pressures remain intense, for both Sainsbury’s and its customers, meaning profits will likely go nowhere this year. But for now, the group is holding its own,” he said.

The high cost of a pint has been blamed for the increase in home drinking

Brits spend £4.1bn drinking beer at home

LAURA MCGUIRE

BRITS are increasingly staying at home and cracking open a cold beer from the fridge, as inflation changes drinkers’ habits. New research shows a 25 per cent surge in beer sales in supermarkets and shops outside local boozers during the cost of living crisis.

Despite inflation being at 8.7 per cent, millions are still not willing to completely cut out their daily tipple.

Figures from price comparison site Idealo, based on numbers from the Office for National Statistics, showed Brits are spending £4.1bn per year on beer, 25 per cent more than in 2020.

With the price of a pint in the capital costing over £7, drinking at home is a cheaper option. Supermarkets have also cashed in on the trend, with a four pack of San Miguel beer costing just £5 in Tesco, and a four pack of draft Guinness stout just £4.75. Boozers have been forced to up prices in recent months due to higher energy costs and price pressure in the supply chain.