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Supermarket inflation has fallen to its lowest level for over a year, according to the latest figures from The Grocer Price Index.
The overall GPI contracted by 1.2 percentage points from 2% to just 0.8% in the month to 1 April - the lowest overall GPI figure since March 2017 and down from a peak of 2.9% in October.
Overall, three of the GPI’s categories recorded price in deflation. Notably, considering the introduction of the sugar tax this week, soft drinks led the way with industry-wide price cuts of 1.7% followed by alcohol (-0.9%) and health & beauty (-0.7%).
The Grocer Price Index, collated by Brand View from around 60,000 individual SKUs across the big four supermarkets, shows Sainsbury’s (SBRY) recorded year-on-year deflation of 0.9% in the month to 1 April after instigating a swathe of price cuts in May.
Prices at Morrisons (MRW) and Waitrose are almost exactly the same as a year ago, both recording flat inflation year on year having peaked at 2.8% and 2.7% respectively in autumn last year.
Tesco (TSCO) continues to display the highest level of inflation across the mults, as it has done every month since August 2017.
However, Tesco recorded annual price inflation of 2.6% in the month to 1 April having hit a five-year inflationary high of 4.1% in the previous month.
Morning update
In this week’s edition of The Grocer is an in-depth look at the collapse of Conviviality and what happens next to its retail and wholesale businesses, as well as profits and sales soaring at the UK’s largest forecourt operator MRH, the latest on AF Blakemore’s decision to sell its cash and carry operation and more.
See thegrocer.co.uk/finance later this morning for the full stories.
Drinks mixer supplier Fever-Tree (FEVR) has announced the departure of non-exec director and Conviviality chairman David Adams following the collapse of the retail and wholesale business.
Fever-Tree said Adams tendered his resignation with immediate effect following the administration (announced yesterday) and this was accepted by the board.
Bill Ronald, non-executive chairman of Fever-Tree commented: “On behalf of the Board, I would like to thank David for his considerable contribution to the Company since it floated on AIM. David has been a valued member of the Board and I wish him all the best for the future.”
On the markets this morning, the FTSE 100 fell back as low as 7179pts this morning after US President Donald Trump threatened a further US$100bn of tariffs on Chinese goods. However, it has since recovered to 7,188.9pts - down just 0.2% from yesterday’s close.
Early risers include British American Tobacco (BATS), up 1% to 4,330.5p, Fever-Tree, up 1% to 2,716p, Tesco (TSCO), up 0.5% to 261.4p and Britvic (BVIC), up 0.5% to 680p.
Fallers include Marks & Spencer (MKS), down 2.6% to 267p, B&M European Value Retail (BME), down 1.5% to 388.9p, Ocado (OCDO), down 0.8% to 519.7p and SSP Group (SSPG), down 0.7% to 612.5p.
Yesterday in the City
The FTSE surged back 2.4% yesterday to 7,199.5pts as fears over an escalating trade war between the US and China temporarily subsided to rally markets across the globe.
Many grocery retail stocks benefited from the improved sentiment, with SSP Group (SSPG) rising 3.2% to 617p, Morrisons (MRW) climbing 2.9% to 224.8p, Sainsbury’s (SBRY) up 2.9% to 244.1p, Ocado (OCDO), up 2.9% to 524p and Marks & Spencer (MKS) up 2.8% to 274p.
Also on the up were McColl’s (MCLS), jumping 7% to 230p, WH Smith (SMWH), up 2.3% to 1,989p and Pets at Home (PETS), up 4.5% to 173.2p.
Amongst the fmcg risers were Fever Tree (FEVR), up 3.1% 2,689p, to Diageo (DGE), up 2.7% to 2495p, PZ Cussons (PZC), up 2.6% to 232.6p, Reckitt Benckiser (RB), up 2.5% to 6,2020p, and Kerry Group (KYGA), up 3.9% to €85.40.
The day’s few fallers included Majestic WINE (WINE), down 4% to 384p, Just Eat (JE), down 1.3% to 685.2p, McBride (MCB), down 1.1% to 685.2p, Hilton Food Group (HFG), down 1% to 830p and PureCircle (PURE), down 0.8% to 370p.
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