June’s grocery prices were just 0.7% higher than in May with a trolley of 100 goods from the big four rising from £197.48 to £198.96. This is a significant slowdown from the 2.8% month-on-month rises in both April and May.
Morrisons, which cut 2,000 prices in June, actually reduced its trolley by 1%. But Asda and Sainsbury’s trolleys rose 0.3% and 0.8%. Tesco’s prices rose 3.1%. Danielle Tolson, analyst at Nielsen, said heavy promotion was responsible for the slowdown. “Tesco and Asda used to be more about everyday low prices but have noticeably increased promotions since Christmas, bringing their level of spend into line with Morrisons, traditionally a big investor in promotions.”
Annual inflation was in line with ONS data at 11%.